Over the Paywall – Good Info News Wire
Key Facts
- Talia Phillips from Virginia Beach halted her family’s search for a new home as their mortgage payments would’ve shot up from $1,300 to $3,000 per month.
- The housing market’s strain is disproportionally affecting those with less to spend, leading to a decline of trade-up buyers according to Sam Khater, chief economist at Freddie Mac.
- House prices in the lowest sector of the property market are increasing faster than any other category, with prices for starter homes (75% or less than the median price in a market) nearly tripling since 2004, reports CoreLogic, a property information firm.
Article Summary
With the strain in the housing market, families like Talia Phillips from Virginia Beach have had to halt their search for a new home due to skyrocketing mortgage payments. Their’s is a common story as soaring property prices are impacting those with less disposable income. Chief Economist at Freddie Mac, Sam Khater, explains that “trade-up buyers,” those looking to upgrade their homes, are disappearing as they are unable to afford the increasing prices.
Intriguingly, it is the lowest sector of the property market that’s seeing the most accelerated price increases. CoreLogic, a property information firm, reports that the price of starter homes, defined as those costing 75% or less than the median price in a given market, has almost tripled since 2004. For aspiring homeowners, this makes the dream of home ownership even more elusive.
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