Low Rates No Longer
Offsetting Price Gains; Affordability Wanes
Posted
to: MND NewsWire
Friday, November 13, 2020 11:03 AM
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The National Association of Realtors® (NAR) said on Thursday that home
prices have continued to grow in each of the 181 areas it tracks for its
quarterly metro home price report. Both record-low mortgage rates and depleted
inventories of existing homes for sale contributed to the annual growth. "Favorable
mortgage rates will continue to bring fresh buyers to the market," said
Lawrence Yun, NAR chief economist. "However, the affordability
situation will not improve even with low interest rates because housing
prices are increasing much too fast." Percentage price gains reached
into the double digits in 65 percent or 117 of the areas. In comparison, only
15 metro areas recorded double-digit increases in 2020's second quarter. The
biggest gainers in the third quarter were Bridgeport, Connecticut, (27.3 percent);
Crestview, Florida. (27.1 percent); Pittsfield, Mass. (26.9 percent); Kingston,
New York. (21.5 percent); Atlantic City, New Jersey (21.5 percent).
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