Why are Home Prices are Still So High?
- James Fasola
- Apr 11, 2023
- 1 min read
With the start of the Spring/Summer buying season, the team at StepInside wanted to take a closer look at why are home prices are still so high? Here are some interesting points to consider:
š 70% of current homeowners have an interest rate below 4%
šØ The estimated housing stock (home listed for sale) is at ~575K; while prior to the pandemic, it was typically over ONE MILLIONš
š® Depending on who you ask, we currently have a housing shortfall of between 2-6 Million homes
š¶āāļø With many Millennials and some Gen Zers coming into the market, we can expect to continue experiencing even higher demand for fewer properties
Thus, until we see a serious reduction in interest rates or a housing building boom, we likely will continue to battle with, in the short-term, high housing costs due to steady/increased demand for fewer properties.
To better understand some of these factors and many more we recommend reading: Fixer-Upper by Jenny Schuetz
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