US Housing Market Stagnation

Bank of America economists warn that the US housing market is stuck and may not improve until 2026 or later due to high home prices, surging mortgage rates, and a limited supply of homes. The 'lock-in effect' is preventing existing homeowners from selling and moving, further restricting supply. First-time homebuyers are advised to remain patient.

Declining Home Prices in Former Hotspots Due to High Costs

Home prices are falling in former hotspots like Austin, San Antonio, Fort Worth, and Portland as near-record housing costs push homebuyers away. The drop in prices follows an influx of residents during the Covid-19 pandemic.

Decline in Home Prices in Former Hotspots

Home prices are falling in former hotspots like Austin, San Antonio, Fort Worth, and Portland due to near-record housing costs pushing homebuyers away. The drop in values is a result of price surges during the Covid-19 pandemic as people flocked to these areas. Austin, known as a pandemic 'boomtown,' saw a decline of 2.9%, while San Antonio and Fort Worth decreased by 1.2%, and Portland by 0.9%. Nationwide, house prices rose to an all-time high before showing signs of softening.

Consumer Confidence in May 2024

Consumer confidence surged in May, despite concerns about household finances, inflation, and a possible recession. Buying plans for autos remain low, while interest in big-ticket appliances and smartphones increased. Inflation expectations rose, along with the belief that interest rates will climb higher. Home purchasing plans are at their lowest level since August 2012, while home prices reached a record high in March.

U.S. Home Prices Surge in March

Home prices in the U.S. continue to rise in March, making it difficult for buyers to afford homes due to interest rate hikes. The S&P CoreLogic Case-Shiller index shows increases in all major metro markets. The National Home Price Index reached a new all-time high, with the median price of previously owned homes at $392,900 and newly built homes at $439,500. Mortgage rates have soared as the Federal Reserve combats inflation, leading to a new dynamic in the housing market where both rates and prices are high.

Today's Housing Market Challenges

The housing market is currently experiencing a freeze due to high home prices, low affordability, and high interest rates, leading to a standoff between buyers and sellers. The lack of inventory, driven in part by hesitant move-up buyers, is contributing to the problem. Millennials and Gen Z are feeling frustrated as homeownership becomes less accessible.

Renting vs. Buying Homes in Metropolitan Areas

Due to rising home prices and high mortgage rates, it is now more affordable to rent than to buy a home in all of America's biggest metropolitan areas according to a report by Realtor.com.

Bozeman, Montana's Surging Home Prices Due to Increased Migration

Bozeman, Montana, experiences a surge in home prices due to increased migration, with prices rising significantly above the national average. Out-of-state wealth, remote work trends, and high mortgage rates impact the housing market in the area.

Rapid Growth in Home Prices at the End of 2023

Home prices surged to an all-time high at the end of 2023 due to a dried up market for existing homes as mortgage rates rose. The S&P CoreLogic Case Shiller Home Price Indices showed a 6.1% increase from the previous year, exceeding expectations.

Housing Market Trends in the U.S.

Despite the highest mortgage rates in decades, the persistent shortage of homes on the market is causing house prices to climb. The S&P CoreLogic Case-Shiller 20-city price index rose for the 11th straight month in December, with home prices up 6.1% compared to a year earlier.