According to the National Association of Realtors or NAR, the home values in over 170 main areas in the country are increasing every year. Just mid of this year, about nineteen percent of those main areas are increasing by significant numbers.
The gradual increase in mortgage charges is said to be the reason behind the demand all over the country as well as the stable rent increases and the rise in the local job markets. This was what NAR Chief Economist Lawrence Yun said. Furthermore, he said that the supply unsuccessfully able to compensate with the demand giving it more reason to push home values higher in most of the major areas. Affordability continues to become a serious issue for tenants who are eyeing for homeownership, he added.
As stated by Yun, for renters who are planning to own a home, affordability is becoming an obstacle for them to realize their plans. Home values and rents are significantly rising however wages are only showing a sluggish and very minor increase, most importantly in higher-priced markets.
Basing on an 8.2 percent increase annually, the country’s average home values for a single-family home during the second half of the year is said to be $229,400.
Lawrence Yun further explained that the constant increase in home values has only favoured homeowners by appraising their household value. He said that inequality is fast growing in America.
The average revenue of a family in America somewhat increased into somewhere near $66,600 just after the first half of this year ended. However, 5% downpayment for a home basing on the average home values would reach up to $49,195, and $46,605 for 10% then $41,427 for 20%. These reports are from the National Association of Realtors.