From high mortgage rates to high home prices, homebuying’s just not what it used to be. 🥴🏡
All this talk of “higher” things makes us wonder what Snoop Dogg did this past 4/20. Maybe he made a nice batch of brownies with Martha Stewart! 🍫
If you’re looking for a new home this spring season, breeze through these new stats and info. 👇
Here’s Five Fast Facts on the spring homebuying season:
- 🔮 A Fickle Forecast - Although more people are applying for mortgages now than they were last fall, mortgage application volume is still 10% lower than it was this time last year. However, experts say this spring market will be a decent one, as home listing and inventory continue to grow. Also, the average rate for a 30-year fixed mortgage in April bumped back above 7% (thanks, inflation).
- 💰 Mucho Mortgage - Between May 2019 and May 2023, average mortgage rates increased by over 2%. Because of the jump, home sales dropped around 25%. A lot of homeowners put the brakes on selling and stayed put because they were locked into a better mortgage rate than what’s currently out there.
- 🏘️ Moving In - As of February, new home listings are up 14.8%, the biggest jump since May 2021. Right now, there are roughly 25% more available homes for sale compared to last year. However, even with this increase, the number of homes for sale is still significantly lower than it was pre-pandemic.
- 📈 Crippling Costs - The average annual income needed to buy a home is over $106,500. That’s an 80% increase over the last four years. The average American household currently earns $81,000 a year. Oh, and the monthly mortgage payment on a typical home in the US has almost doubled since 2020.
- 🌷 Smells Like Spring - Why is spring such a popular time to buy a house? Warmer weather and longer days make the ol’ house hunt more enjoyable. Families also like to buy during the spring so they can settle into their new home before the next school season rolls around. Increased supply usually hits the market around this time of year, too.
🔥Bottom line: Depending on where you live, home prices could be mind-bogglingly high. The median sale price for a home in February was $412,778, over 6% higher than it was last year. Sheesh. If you’re waiting for interest rates to come down, you might be waiting awhile. Check out this article for more deets.
Are you in the market for a new home?
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