A report from the National Association of Realtors (NAR) revealed that home prices have been on an upward trend since President Joe Biden took office in 2021. According to the analysis, the median home price has risen 25% (from $307,400 in 2021 to $384,500 this year).
Compared to January of this year, the average price of homes also increased by 5.7%. The study points to inflation as the main cause of the trend.
Mortgage and rental costs soar
However, not only did housing prices increase; mortgage loan costs have skyrocketed by 98%. In February, the monthly mortgage payment on a home was around $2,000 (compared to January 2021 when it averaged roughly $1,000). Mortgage interest rates, which averaged 2.79% in January 2021, are at 6.78% this year.
Rent prices have also risen by about 20%. The average rent per month for a two-bedroom apartment was $1,132 in January 2021. Now, the average rent for an apartment is $1,363 per month.
Nationwide sales down
The total housing inventory (ready for sale) at the end of February this year was 1.07 million units (up 5.9% from January) and up 10.3% from 970,000 units a year ago.
On the other hand, by region, sales increased in the West, South and Midwest, but remained flat in the Northeast. However, year over year, they declined in all regions. Housing also became more expensive in all regions.
