09/26/2023
🏡 Here is why House prices are setting records. 📈
Here's the deal: More people want to buy houses than houses for sale. Because of this, house prices are going up ⬆️. Think of it like a popular toy at Christmas 🎄 - if everyone wants it and there aren't many, the price goes up! Across the whole country, house prices have gone up 1.0%. And here’s something surprising 🤔: getting a loan to buy a house became more expensive during May to July due to interest rates.
Because of these high prices 💰 and interest rates, most people who already own houses are deciding not to sell and move 🚚. Also, we just learned last week that home builders 🏗️ are not starting to build as many new homes.
Demand for houses is down ⬇️, but supply is down even more ⬇️⬇️. That is why home prices continue to rise, and it doesn't look like it will get any better 📈.
The S&P CoreLogic Case-Shiller National Home Price Index in July increased 0.6% month-over-month and 1% over the last 12 months, reaching a new high.