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
- 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
- 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
- But even with higher prices, due to continuing low mortgage interest rates and better incomes, home affordability is still good
- 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
- I’m MW
Mary: And I’m Mary Walden for N C State Extension.