A sign of relief in housing markets? No, it’s still bad

Good luck if you want to buy or sell a house in 2022.

The normal cost of home ownership has increased by tens or hundreds of thousands of dollars as mortgage rates have risen faster than at virtually any time in history.

All the best if you are looking for a new rental. As demand skyrockets in the absence of available units, the average rent has reached an all-time high.

As investors, this begs the question: how can I make money in a seemingly tight real estate market?

Well, Benzinga actually has a few tools to help you out. Find out how you can invest in a rental property for as little as $100 (or more, depending on your appetite). It pays you quarterly and your investment appreciates along with the property.

For the layman, it can be difficult to grasp just how much rates have risen, but it can help.

The average fixed rate over 30 years mortgage was at its lowest point just 20 months ago; today it is higher than at any other time this century.

How did we come here?

A cauldron mixed with the worst ingredients: a pandemic, rising inflation and rising interest rates. However, it is a bit deeper than that.

A historically unique housing shortage resulted from rapid fluctuations in demand in the 21st century and equal (or unequal) amounts of construction.

The largest generation in American history, the Millennials, entered their prime home-buying years just as housing supply stagnated.

A rise in property prices was inevitable given limited supply, soaring demand and rock bottom rates. The national Case-Shiller home price index hit new highs every year in 2017, 2018 and 2019.

Then Covid-19 shook the markets.

The housing crash of 2007 devastated homebuilders so they didn’t build and the economy came to a halt.

Reckless move, as the federal government handed out checks to more than 100 million households and with a shelter-in-place order, many families were looking to move.

The housing market soared, with 14% more permanent moves during the pandemic, according to USPS data, leading to tight supply as homebuilders limited new construction.

To learn more about the latest developments in the industry, check out Benzinga Real Estate Homepage.

picture by Pond Laura Gangi on Shutterstock

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