Housing costs up 21% since 2021, hottest markets prohibitive
A report from a website focused on home purchases shows that the price of homes in the US is rising – up 21 percent since the beginning of 2021.
House Method said in a press release about the report that it analyzed data on the 100 largest statistical areas (MSA) and ranked them according to seven factors, including affordability, inventory and population growth.
The House Method report found that the hot market has not put a damper on the buyer’s efforts given various market factors:
The housing market has exploded in recent years due to fluctuating mortgage rates, high demand accompanied by low inventories, as well as external job opportunities that allow millions to rethink their home base. Americans have begun to reconsider their priorities in a living space, many prioritize space and comfort while others have flocked to busy metropolises, which has led to an exponential increase in home ownership.
The House Methods report highlighted these findings:
- The houses remain on the market for an average of 1[ads1]5 days in the hottest markets, 10 days less than the national average
- The most popular markets are also some of the least affordable
- House prices are estimated to increase a further 14.9 per cent before 2023, even with sharp increases in mortgage rates
- The top ten markets rarely stay on the market for more than 15 days, 40 percent less than the national average of 25 days
- Many of the hottest housing markets are also some of the least affordable as demand increases and inventories fall
- The equity in the home has skyrocketed, allowing sellers to make big money
The report continued:
Our analyzes found that Tampa-St. Petersburg-Clearwater, Florida, tops the list as the hottest housing market this year. Homes remain on the market for at least some time before being sold, sold for top dollar and attracting new residents at a rapid pace. Low inventory combined with a fast sales rate contributed to the high score – and it is important to note that many of the top positions ranked poorly for reasonable prices.
As these hot housing markets continue to win, we can assume that reasonableness will continue to decline. The other top 5 places were rounded off by:
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Phoenix-Mesa-Scottsdale, Arizona
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Austin-Round Rock, Texas
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Seattle-Tacoma-Bellevue, Washington
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San Jose-Sunnyvale-Santa Clara, California
The lowest rankings for the metropolitan area went to Jackson, Mississippi; Bridgeport-Stamford-Norwalk, Connecticut; Greensboro-High Point, North Carolina; McAllen-Edinburgh-Mission, Texas; and Winston-Salem, North Carolina.
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