New-home buyers are facing higher prices, and a big reason is escalating building costs. Building material prices are up 19% over a year ago, according to a report from the Bureau of Labor Statistics. Material costs have jumped by about 36% just since the pandemic began. Many builders are passing on those higher costs to home buyers.The price of a new home continues to climb and reached a median sales price of $436,700 in March. That is up 2
Since the pandemic began, homeowners have been eager to spruce up their spaces. Even recently, homeowners are spending more on home improvement projects than they have—due partially to higher building material costs, but also to a desire to widen the scope of their projects.Kitchens and bathrooms continue to be the most popular areas to renovate, according to the 2022 U.S. Houzz & Home Study. The median spend in 2021 on a kitchen remod
Competition abounds in the real estate market, and buyers are continuing to bid up home prices this spring. Fifty-two percent of homes sold above the list price in April, up from 45% in March and from 42% a year earlier, according to OJO Labs, a real estate technology company.Homes in April sold for an average of $13,655 above the list price across metro areas, according to the OJO Lab analysis that tracked MLS sold data.In San Francisco, 82% of
As home prices continue to increase, homeowners are getting richer and richer. About 45% of mortgaged residential properties in the U.S. were considered “equity rich” in the first quarter, up from about 32% a year earlier, according to a new report from ATTOM Data Solutions. Equity rich means that the combined estimated amount of the loan balance on the home was no more than 50% of the home’s estimated market value.“Homeowners continue to
More home buyers are reaching for the ARMs. Adjustable-rate mortgages generally offer a lower introductory mortgage rate that is locked in for five, seven, or 10 years before then adjusting.As mortgage rates rapidly rise, some buyers may be getting priced out, unless they lock in an ARM, which may have an introductory rate closer to the level of fixed-rate mortgages when they started their house hunt.The average contract interest rate for a 30-ye
Lumber prices are falling, reaching their lowest level so far this year. Lumber fell below $800 per thousand board feet on Monday, and prices are down 30% to date this year.Builders have blamed rising material costs, including lumber, for skyrocketing prices and project delays in new-home construction. But buyers may not want to celebrate yet, as lumber prices are still up significantly from historical levels. According to National Home Builders
The 30-year fixed rate mortgage averaged 2.96% just a year ago; this week, it averages 5.27%, Freddie Mac reports.“Mortgage rates resumed their climb this week as the 30-year fixed reached its highest point since 2009,” said Sam Khater, Freddie Mac’s chief economist. “While housing affordability and inflationary pressures pose challenges for potential buyers, house price growth will continue but is expected to decelerate in the coming mon
Home prices are surging across the country, but a handful of areas are seeing some of the highest appreciation in the country upwards to 28% or more in one year alone.The majority of the top 10 areas recording the largest annual gains are in midsize and small markets and half are located in Florida, according to a new quarterly housing report released by the National Association of REALTORS®.“Traditionally, homes in these markets were viewed a
Homeowners may be shocked at what their price is now worth. In the first quarter, 70% of the largest metros in the U.S. posted double-digit price growth in median single-family existing-home sales prices, the National Association of REALTORS® reported Tuesday.The median sales price of a single-family existing home rose at a faster pace in the first quarter and was at $368,200, a 15.7% uptick from a year ago.While prices rise and mortgage rates t
The 30-year fixed-rate mortgage barely budged this week, but it’s still stressing home shoppers feeling concern about being priced out. The 30-year fixed-rate mortgage averaged 5.10%, down slightly from 5.11% last week, Freddie Mac reports.But it is one week before the Federal Reserve is expected to raise interest rates further, Nadia Evangelou, National Association of REALTORS® senior economist and director of forecasting, says on the associa
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