Good luck if you want to purchase or sell a home in 2022.
The normal cost of home ownership has grown by tens or hundreds of thousands of dollars as mortgage rates have risen faster than at virtually any time in history.
All the best if you’re looking for a new rental. As demand soars in the absence of available units, the average rent has increased to an all-time high.
As investors, this begs the question: How can I make money in a seemingly strained housing market?
Well, Benzinga actually has some tools to help. Check out how you can invest in a rental property for as little as $100 (or more, depending on your appetite). It pays you out on a quarterly basis, and your investment appreciates in tandem with the property.
For the layman, it may be difficult to grasp how much rates have increased, but this may help.
The average fixed rate for a 30-year mortgage was at its lowest point ever just 20 months ago; today, it is higher than in any other period this century.
How did we get here?
A cauldron mixed with the worst ingredients: A pandemic, rising inflation, and rising interest rates. However, it’s a little deeper than that.
A historically unique housing scarcity has resulted from the 21st century’s rapid swings in demand and equal (or unequal) amounts in construction.
The largest generation in American history, the Millennials, entered their prime home-buying years just as the housing supply all but stagnated.
A rise in property prices was inevitable given the constrained supply, soaring demand, and rock-bottom rates. The Case-Shiller national home price index reached new record highs each year in 2017, 2018, and 2019.
Then Covid-19 rocked the markets.
The housing meltdown of 2007 left homebuilders devastated, so they didn’t build, and the economy came to a standstill.
Unwise move, as the federal government distributed checks to more than 100 million households, and with a shelter-in-place order, many families looked to move.
The housing market soared, with 14% more permanent moves during the pandemic, according to data from USPS, causing strains to supply as homebuilders reined in new construction.
To read about the latest developments in the industry, check out Benzinga’s real estate home page.
Photo by Laura Gangi Pond on Shutterstock
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Source: https://finance.yahoo.com/news/sign-relief-housing-markets-no-174932168.html