#homeaffordability #housingmarket #realestatemarket #ushousingmarket
In this video, I'll explain how home affordability will drive the housing correction in 2023 and how that impacts the multi-family market.
The trifecta of Interest rates, inventory, and housing prices will drive housing affordability in 2023.
According to the New York Times Existing home prices in the United States soared 45 percent from December 2019 to June 2022, when Covid emerged and then gripped the nation. That rate of increase over such a short interval had never happened in the history of the U.S. national home price index, dating back to 1987.
This all took place in a very low interest rate environment of around 3.5%. We are now in 6% environment. Right now interest rates are the main issue with home affordability, which has started to bring prices down and increase inventory, which would normally create balance. However the extremely rapid rise in interest rates means that homes financed as little as a year ago are locked in the mid 3's and people are really going to have to or need to move to put there houses on the market, thus resulting in limited inventory.
As such, we will continue to see strong rental rates and renter demand in the multi-family segment for the coming year.
I comment on timely news every day.... so subscribe below. To get the updates right to your inbox with links, signup for the weekly newsletter at www.thelimitedpartner.com/news, and I'll make sure you are getting the timely information you need to make better decisions earlier. www.thelimitedpartner.com/news.
https://www.nytimes.com/2022/09/28/opinion/housing-prices-pandemic.html
