Home prices in the U.S. have risen for 12 consecutive years. In 2021, house prices increased by 18 percent – the highest jump on record. In the following two years, the market slowed, with the Freddie Mac House Price Index (FMHPI) measuring an increase of 4.8 percent in 2022 and 6.5 percent in 2023.
What is the value of your home?
The median sales price of existing single-family homes reached roughly 389,000 U.S. dollars in 2023, increasing by around 3,000 U.S. dollars on the previous year. The median sales price of new single-family homes followed a similar trend, but declined slightly in 2023.
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 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.
