NC State Ag Economist Dr. Mike Walden – “So You Want to Buy a House”

 

Mary:  This is Mary Walden with economist MW, welcoming you to the economic perspective.  Today’s program asks – so you want to buy a house.  Mike, the home buying market certainly seems to be much better today than it was during the Great Recession.  But experts say all is not totally well – that there still are issues.  Give us a rundown of the key components of the home-buying market.

Mike: Summary Answer

  1. First, price – nationally and in most markets, home prices have fully recovered from the losses during the recession – and in some places they have set new records
  2. Part of the reason is sluggish new construction – not yet back to pre-recessionary levels – which means the inventory of homes for sale is relatively low
  3. But even with higher prices, due to continuing low mortgage interest rates and better incomes, home affordability is still good
  4. Some say the ultimate determining factor is the slow rate of growth in new households – virtually no growth this year – and new households drive new construction
  5. I’m MW

Mary:  And I’m Mary Walden for N C State Extension.