Home prices have spiked over the past year. The most recent S&P Case-Shiller Home Price indices, for example, shows, in the 12 months ending in February, prices rose at the third fastest pace in the 35 years they've been tracking them. S&P's index – which is considered among the leading measures of U.S. home prices – found prices up in every region and at an accelerating pace from the previous month's report. But while the data could seem discouraging for hopeful spring home shoppers, there may be good news on the horizon. According to Craig J. Lazzara, managing director at S&P, rapidly rising home prices may soon begin to slow. “The macroeconomic environment is evolving rapidly and may not support extraordinary home price growth for much longer,” Lazzara said. “The post-COVID resumption of general economic activity has stoked inflation, and the Federal Reserve has begun to increase interest rates in response. We may soon begin to see the impact of increasing mortgage rates on home prices.” (source)

The number of home buyers looking to move to a new area continues to climb, according to a recently released report. The trend began when the pandemic first started early in 2020. The share of prospective home buyers thinking about moving metros grew as mitigation efforts changed the way we lived our day-to-day lives. Locations in the suburbs and exurbs saw an influx of interested buyers as remote work made the daily commute less of a factor in home buying decisions. Now, two years later, the share of relocating home buyers continues to grow. In fact, new numbers show that 32.3 percent of online home shoppers looked to move to a new city in the first quarter of this year. That's up from 31.5 percent last year at the same time, and 26 percent in 2019. Of course, the option to work from home has something to do with it, but it's not the only factor. Affordability also ranks high among the reasons buyers are weighing options farther from home. With prices and mortgage rates rising, more buyers are opting for areas where they can get more for their money. They're also opting for sunshine, as the list of cities most popular with migrating buyers includes Miami, Phoenix, Tampa, Sacramento, and Las Vegas. (source)

New numbers from the National Association of Realtors show sales of previously owned homes fell 2.7 percent in March, pushing sales 4.5 percent lower than they were last year at the same time. It was the second straight month home sales slowed. Lawrence Yun, NAR's chief economist, says homes are still selling quickly despite the decline. “The housing market is starting to feel the impact of sharply rising mortgage rates and higher inflation taking a hit on purchasing power,” Yun said. “Still, homes are selling rapidly, and home price gains remain in the double-digits.” It's true. While sales declined, listings continued to sell quickly. In March, for example, 87 percent of homes sold in less than a month. But while higher prices and fast sales continue to challenge home buyers, there are signs that a better balanced market is on the way. In fact, the number of homes for sale at the end of March was up nearly 12 percent from the month before, a sign that for-sale inventory is beginning to rebound. As more homes become available, prices will moderate and buyers will have more choices and encounter fewer bidding wars. (source)

Sometimes you have to move. Maybe you need a bigger house to accommodate a growing family. Maybe you need to move for a job. Whatever the case, there are certainly situations that make a move unavoidable. There are other times, however, that the decision to move isn't quite as clear cut. In those cases, there are many factors that can influence whether, or when, you move. According to Fannie Mae's Economic and Strategic Research Group, recent mortgage rate increases may be among them. Doug Duncan, Fannie Mae's senior vice president and chief economist, says current homeowners who have locked in a historically low mortgage rate may now be reluctant to move since selling their home would mean giving up their rate. “Households with a 3-percent, 30-year fixed-rate mortgage are unlikely to give that up ...” Duncan says. “We expect this so-called 'lock-in' effect to weigh on home sales.” Of course, whether or not the “lock-in” effect actually keeps homeowners from selling depends a lot on their particular situation and needs. But in a market with too few homes for sale, it's definitely something to watch. (source)

Home buyers typically know their price range and approximate mortgage rate. After all, without knowing those two things, it'd be much more difficult to calculate their potential monthly mortgage payment. But those aren't the only two factors that determine how much owning a particular house will cost. For example, property tax is also a factor, and it can add a significant amount to your homeownership expenses. So what should prospective buyers expect to pay? Well, according to ATTOM Data Solutions' most recent property tax analysis, the average annual tax on single-family homes in the U.S. was $3,785 last year. That's up 1.8 percent from the year before – the second smallest increase in five years. Rick Sharga, executive vice president of market intelligence at ATTOM, says they're likely to go up further this year. “The real surprise is that the tax increases weren't higher, which suggests that tax assessments are lagging behind rising property values, and will likely continue to go up in 2022,” Sharga said. Of course, where you're buying matters. Some neighborhoods have higher taxes than others, so prospective buyers should be sure to check their potential tax when calculating their costs before buying. (source)

Your household budget is a reflection of your personal priorities. No two budgets are the same. That's why it's important to take a look at yours when thinking about how much house you can afford. Knowing how and where you're spending money will give you a good idea of how a monthly mortgage payment will fit into your budget. But while your budget is specific to you, there are some common guidelines. For example, the 28 percent rule. According to the rule, a household should spend no more than 28 percent of its gross monthly income on total housing expenses. This is a common standard used to determine housing affordability. If a house requires more than 28 percent of your income, it'll likely be a struggle for you to afford it. With that in mind, ATTOM Data Solutions recently looked at how affordable median-priced homes are around the country. The data shows that homeownership remains within the average workers' financial means. In fact, a median-priced home required 26.3 percent of the average national wage in the first quarter of 2022. That's higher than previous quarters but still less than 28 percent, which means homeownership remains within reach despite increasing prices and mortgage rates. (source)

Fannie Mae's monthly Home Purchase Sentiment Index surveys Americans to gauge their feelings about the housing market and economy. The survey asks participants whether they think now is a good time to buy or sell a home, if they believe mortgage rates and prices will rise or fall, and how they feel about their job and income. In March, respondents said they feel now is a good time to sell a house, with 74 percent agreeing that the time is right for homeowners who are ready to make a move. Unfortunately, while the number of participants who think it's an opportune time to sell continues to rise, the number who say it's a good time to buy has been falling. Mark Palim, Fannie Mae's vice president and deputy chief economist, says there are a few factors behind the decline. “The 'Good Time To Buy' component of the index reached yet another record low, with high home prices, rising mortgage rates, and macroeconomic uncertainty serving as consumers' chief concerns,” Palim said. However, though Americans have concerns, they are also feeling more confident about their jobs and income. The survey found 86 percent of participants said they aren't concerned about losing their job and the number who said their household income is higher than it was a year ago rose 2 percent from the month before. (source)

When choosing a place to live, you also have to choose whether you're going to rent or buy. Of course, there are a number of reasons you might choose one over the other. For most of us, though, the decision will largely be financial. Buying a home requires a significant upfront investment and you need to have enough to cover a down payment, closing costs, etc., before you can buy. That may help explain a new analysis that found education level is a good predictor of whether or not a person will own a home. According to the data, among U.S. homeowners, 40 percent have attained a bachelor's degree or higher and 30 percent have some college or an associate's degree. By comparison, 23 percent of homeowners have a high school diploma and 7 percent have less than a high school education. That means the vast majority of homeowners have, at least, some higher education. But since the average income for a college graduate is more than twice that of those with a high school diploma or less, it seems income may ultimately be the best predictor of future homeownership. (source)

Every homeowner who's selling their home wants it to attract buyers and sell for the highest possible price. That's why they remove the clutter, fix any maintenance issues, plants some flowers and make sure their home looks its best before listing it. Makes sense. A good home won't garner the same amount of interest if it's presented poorly. But there are other considerations when selling a house. For example, the time of year matters. Homes sold in the winter may not sell as quickly, and for as much, as they would in the spring or summer. According to a recent analysis, even the day of the week makes a difference. In fact, the analysis found homes listed on a Thursday can sell for $1,100 more than if they were listed on a different day. Why? Well, busy buyers often don't have time to go see available listings during the week. So, a home listed closer to the weekend, gives buyers time to arrange their schedule and plan a time to go out and see it. (source)

In order to buy a house, you have to be approved to borrow enough money to pay for it. After all, not many of us have a couple hundred thousands dollars in cash lying around. So most buyers, before they start their home search, will have to talk to a lender to see whether they qualify for a mortgage. But the standards used to determine whether or not a buyer's qualified aren't fixed. There are times when getting a mortgage is harder and others when it's easier. Because of this, the Mortgage Bankers Association's Mortgage Credit Availability Index tracks whether standards are tightening or loosening from month to month. According to their most recent report, getting a mortgage got easier in February. In fact, Joel Kan, MBA's associate vice president of economic and industry forecasting, says credit availability is at its highest point in months. “Credit availability increased to its highest level since May 2021, driven by growth in jumbo loan programs, as well as those that include allowances for ARMs and expanded credit score and LTV requirements,” Kan said. “In a period of rising mortgage rates, affordability challenges, and declining volume, lenders have made efforts to slightly broaden their product offerings.” (source)