“We’re seeing price reductions a little bit more frequently than we had before,” said David Berger, real estate agent at Compass, a broker agency in New York. Rates for a 30-year mortgage recently neared 6 percent, after dropping to 2.65 percent in January 2021.Īnd real estate agents say they are already seeing cracks in the housing market. Purchasing a home has become much more expensive recently as the US Federal Reserve raises interest rates to fight runaway inflation. “You had very few homes and a lot of people that were going to try to buy them,” said Nicole Bachaud, an economist at Zillow, a tech real-estate marketplace company in Seattle, Washington.
Low interest rates fuelled the purchasing spree. The coronavirus pandemic sparked a home-buying frenzy as millions of Americans across the economic spectrum, working from home, set out in search of more space. I think younger people are going to have a great deal of difficulty.” “It’s not going to be a crash in house prices it’s going to be getting people into homeownership so they can build wealth. “That’s our big problem going forward,” Mark Zandi, chief economist at Moody’s Analytics, a research firm based in New York City, told Al Jazeera. As real estate in the United States remains strong despite rising interest rates, market analysts interviewed by Al Jazeera predict that the next housing crisis will centre around Americans locked out of homeownership.
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