Home prices in the U.S. have risen for 11 consecutive years. In 2021, house prices increased by over 18 percent - the highest jump on record. In the following year, the market slowed down and as of July 2023, Freddie Mac House Price Index (FMHPI) measured an increase of 2.88 percent compared to the same period the year before.
What is the value of your home?The median sales price of existing single-family homes reached roughly 393,000 U.S. dollars in 2022, increasing by around 36,000 U.S. dollars on the previous year. The median sales price of new single-family homes followed a similar trend, soaring to roughly 455,000 U.S. dollars.
Understanding the real estate market
There are many factors that can influence the decision of potential homebuyers. Household income and house prices are among the most obvious – the consumer is in a powerful situation when their income increases and house prices decrease. Mortgage rates can also play an important role: when they increase, the idea of buying a home becomes less appealing. The rates on a 30-year conventional mortgage in the United States steadily increased since 2021, meaning monthly interest repayments have also risen.