Housing affordability will be Lowest Since 1985
Independent research firm Capital Economics sounds somewhat bearish on housing in 2023 according to a recent report. as we've noted earlier, the claims for prices vary from place to place and firm to firm, yet the prediction of an average of 8% in price decline in 2023 still leaves prices higher in most places than in 2022. The more troubling part that we took from the attached article is their reasoning that housing affordability will fall to the lowest level since 1985. The reasoning is pretty straightforward as they (capital Economics) think that the combination of higher prices, higher interest rates, and the likely recession headed our way will lead to even greater affordability issues than we're seeing now. Even if prices do fall in some areas, the offsetting high interest rates will have little, if any, impact on the overall market. This combination of events will lead to may potential Buyers being priced out of the market...again. Many will be the same folks who were priced out in 2021 and the first half of 2022 because of all of the covid era purchasing activities that were unprecedented in most places. To add insult to injury, for many unable to buy when rates were at historic lows (sadly, so were inventory levels) now they are forced to paying rental rates the likes of which we haven't seen before either. We can't say it enough, but at PropertyGuerilla.com we encourage people not to change the "what" portion of their real estate searches, only to add another "how" when it comes to search methods. Go to our website to learn more because looking at a common problem using an uncommon lens could just help. #realestate #realtor #buyingrealestate #sellingrealestate #propertyguerilla #housingaffordability #coviderarealestate #buyingpower #rentalrates #affordablehousing