US home prices soared at the fastest rate since 2006 in February
US home pricessurged 10.4% year-over-year in February, the biggest such jump since 2006.
- The market has been red hot during the pandemic, but affordability represents a new challenge.
- Price growth will cool into 2022 as mortgage rates rise and price out more buyers, CoreLogic said.
Everyone knows it's been hard to find an affordable house amid the pandemic, but as the data comes in, it's becoming clearer just how hard.
The answer: Extremely.US
And the outlet sees another year of more expensive housing ahead, projecting prices will rise another 3.2% by February 2022. The end of the pandemic can ease constraints on supply, CoreLogic said. On the demand side, it expects the lack of affordable housing to cut into some potential purchases."The run-up in home prices is good news for current homeowners but sobering for prospective buyers," Frank Nothaft, chief economist at CoreLogic, said. "Those looking to buy need to save for a down payment, closing costs, and cash reserves, all of which are much higher as home prices go up."
"Homebuyers are experiencing the most competitive housing market we've seen since the Great Recession," CoreLogic CEO Frank Martell said. "As affordability challenges persist, we may see more potential homebuyers priced out of the market and a possible slowing of price growth on the horizon."
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