2022 marked the end of affordable mortgages and now the housing market is turning into a cold winter

Children ride scooters behind a house for sale in Los Angeles. Home sales have slowed as mortgage rates have risen.

Allison Dinner/Getty Images

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Allison Dinner/Getty Images

Children ride scooters behind a house for sale in Los Angeles. Home sales have slowed as mortgage rates have risen.

Allison Dinner/Getty Images

Evan Paul and his wife entered 2022 thinking this would be the year they would finally buy a house.

The couple – both scientists in the biotech industry – were ready to put down roots in Boston.

“We got to that place in our lives where we were financially stable, we wanted to start having kids and we wanted to settle down,” Paul, 34, said.

This year a baby girl was brought to them, but that house they dreamed about did not materialize.

The high cost of housing is the first problem that cannot be solved. When the Paulas first started their search, the low interest rates at the time made buying in Boston very competitive, and they didn’t give up.

“There are, you know, two dozen other offers and it will be more than $100,000 on the proposal,” said Paul. “Every time we tried to wait until the end of the week for an open house, there was nothing before we saw it.”

Then came the Fed’s continued interest rate hikes. After a few months, with rising mortgage rates, the Pauls could no longer afford the homes they were looking at.

“At first, we started to lower our expectations, looking for smaller houses and less favorable locations,” said Paul, who eventually realized that the mortgage rate was too high. his family has been bought back.

“The anxiety got to me and we decided to stop and stop.”

Buyers and sellers put plans on ice

The dramatic rise in mortgage rates has cooled the housing market. Many buyers have stopped their search; they can afford the housing costs they considered last year. Buyers are also wary of listing their homes as higher mortgage rates are expected. on their next purchase.

“People are stuck,” said Lawrence Yun, chief economist with the National Association of Realtors.

Yun and others describe the frozen market, which has real estate sales. rejected for 10 months straight, according to the NAR. This is the longest streak of discounts since the group’s sales began in the late 1990s.

“Sellers aren’t putting their homes on the market and buyers are out, obviously their dollar strength has changed with the rise in interest rates, so there’s a bit of a problem,” said Susan Horowitz, a New Jersey-based real estate agent.

Interestingly, it didn’t have much of an impact on prices.

Home prices remain high despite falling sales as inventory remains low. The inventory of unsold homes falling for four consecutive months in November to 1.14 million.

“Anything that comes on the market is the same salmon that’s running up the river and all the bears have just woken up,” Horowitz said.

But even that is starting to crack in some markets.

At an open house for a luxury startup in Hollywood last weekend, agent Elijah Shin didn’t see as many people flocking as he did last year.

“Last year, it probably sold out,” he said. “This house will also be sold, it will take some time.

Or longer.

The home first went on the market in August. Four months later, still waiting for an offer.

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