Moderate job growth and high lending rates contribute to a decrease in demand in the real estate market. According to the National Association of Realtors, sales of existing homes in the USA declined by 3.2% in January compared to December.
"The real estate market has become more competitive for buyers due to rising housing costs and increasing percentage rates on mortgage loans," notes the representative of the National Association of Realtors.
In January, home prices also increased. The average price of homes rose to $247.5 thousand. According to experts' forecasts, the rise in real estate prices may continue further, which potentially could deter buyers.
"The housing market has become more complex for buyers due to the limited selection of available properties and rising prices," emphasize market experts.
