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
Members of Generation Z are emerging in the housing market. Gen Z’s members were born between 1997 and 2012, and the young adults born in that time frame are not only already showing an interest in homeownership but also targeting specific metros to settle into.LendingTree researchers recently analyzed mortgage offers given to adult Gen Zers across the nation’s 50 largest metros last year. Their analysis shows that adult Gen Zers now comprise
As home prices and mortgage rates are increasing, so are closing costs. The average payment for mortgage closing costs for a single-family property was $6,905 in 2021 (including transfer taxes), a 13.4% annual increase, according to CoreLogic’s ClosingCorp, a real estate closing cost data and technology resource.The average price of a home in the U.S. rose by more than $50,000 last year, while the average purchase closing cost climbed by $818,
A growing number of consumers are exploring unconventional pathways to homeownership, including buying a home with a friend, family member, or partner, according to the National Association of REALTORS®’ 2021 Home Buyers and Sellers Generational Trends Report.With rising costs, home buyers may find pooling their money together can put homeownership more within reach.“This strategy can help ease the financial burden of purchasing a home
Pets have been playing an increasingly important role in shopping for a home. More Americans have become pet owners during the pandemic, and they’re prioritizing their pets’ needs when looking for a home or rental. Forty-three percent of pet owners say they’d be willing to move to accommodate their pet, according to a 2021 study from the National Association of REALTORS®. What’s more, 68% of pet owners surveyed by realtor.
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