According to the Census Bureau, the median selling price of new homes plunged nearly $25,000 in November. The price of a new home is now exactly the same as its pre-pandemic average:
Over the longer term new home prices are still up considerably. Adjusted for inflation, a new home costs about $100,000 more than it did in 2000.
Thanks Biden!
Or should I be thanking Trump?
Or Powell?
Of course you should be thanking Trump. He PROMISED to get housing prices down "even before I'm inaugurated". Promises Made; Promises Kept!
Probably not thank anyone, certainly not the Fed, unless you don't need a mortgage. Home affordability is still bad because of higher mortgage rates:
https://dqydj.com/historical-home-affordability/
Affordability didn't start getting bad when prices were going up in the pandemic, they started up when the Fed started raising federal funds.
Mortgage rates are not likely to come down much - they are not high by historical standards. But prices could come down more.
Sure, mortgage rates affect home affordability. I think a lack of supply has had a greater impact on affordability. Especially in the populated areas of California.
Thanks, NIMBYs!
+1
this is very regional, do you have link to the report?
I asked Perplexity.ai if it could do an analysis for the Midwest, but it could not give an answer. I then asked the followup question, 'Is there a database that tracks Midwest regional housing prices?' It replied with:
Yes, there are databases that track Midwest regional housing prices:
The Federal Housing Finance Agency (FHFA) maintains the FHFA House Price Index (HPI), which includes data on house price fluctuations at various levels, including census divisions (which include the Midwest)
.
The National Association of Home Builders (NAHB) and Wells Fargo produce the NAHB/Wells Fargo Midwest Housing Market Index, which tracks housing market conditions in the Midwest region
.
The U.S. Bureau of Labor Statistics (BLS) provides the Consumer Price Index for the Midwest Region, which includes data on housing costs as part of its overall price index
.
And I thought housing prices had gotten out of control during the dot-com bubble of the late 90s.
25000 isn't a plunge when you're up above 400000.