Home Seller Worries Increase Affordable Housing

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Fear of the inevitable foreclosure brought more listings to the lowest price level in the housing market in the second quarter, Redfin said in a report.

The number of properties for sale in the most affordable range – with an average price of $ 108,000 – increased by 11.3% over last year. By comparison, the luxury tier with an average price of $ 1.03 million was next with 1.3% annual supply growth. Affordable homes – homes with an average price of $ 198,200 – rose 0.7%, while expensive homes with an average price of $ 455,000 fell 5.4%, and homes with an average price of $ 290,000 fell 7 ,one%.

“The government’s program to end the mortgage pandemic is coming to an end, which is likely to lead to an increase in the supply of the most affordable homes in America,” Fairweather said. “Some homeowners put their properties on the market because they are worried about being foreclosed when patience dries up, while other affordable homeowners are selling because they want to avoid increased competition among sellers this can happen when abstinence ends. “

The most affordable and luxurious levels also saw the largest annual increase in values and the houses are sold. Luxury home prices rose 25.8%, with sales jumping 88.2%, while most affordable home prices and sales rose 18.7% and 56.8%, respectively. House capital gains skyrocketed during a pandemic, especially in the upper market segment.

Meanwhile, investors bought more private houses than ever before, in the second quarter and now own 15.9% of all US property. This is especially common in the lower end of the market, where investors have made the most purchases.

“Rising prices can be especially problematic for first-time and low-income homebuyers,” Fairweather said. “As the pandemic’s eviction moratorium comes to an end and many Americans have no title to their homes, investors are looking to buy up low-cost real estate and change it. for rent “.



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