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The US real estate market has been making headlines recently, with a mix of good and bad news for buyers and renters alike.
According to a recent report from Realtor.com, rental prices are rising faster in cheaper markets than in more expensive ones.
This trend means that low-income renters may face even more challenges in finding affordable housing.
The report found that rents in the 100 cheapest markets increased by 4.4% in February compared to the previous year, while rents in the 100 most expensive markets only increased by 2.9%.
Home equity declining in four states
According to MarketWatch, four western states have seen a decline in home equity in recent years.
Colorado, Oregon, Montana, and Alaska have all experienced a decrease in home values, which has led to a decrease in overall equity.
However, this trend does not necessarily reflect the nation as a whole. The article notes that while home equity has been increasing nationwide, it’s important to pay attention to regional trends.
In the case of these four states, the decline in home values is likely attributable to a variety of factors, including a slowdown in population growth and an increase in housing supply.
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Home sales surge in February
However, some good news exists for those looking to buy a home.
The Detroit News reports that US home sales surged as mortgage rates dipped in February.
Existing home sales increased by 3.8% in February compared to January and by 9.5% compared to the same time last year. This increase in sales was likely due to the drop in mortgage rates, which fell to their lowest level in over a year.
CNN also reported on the surge in home sales, noting that February saw the biggest year-over-year increase in existing home sales in three years.
Despite the increase in sales, the report notes that the housing market is still facing challenges, such as a shortage of affordable homes for sale and rising home prices.
However, with mortgage rates remaining low, buyers may still be able to find a good deal on a home.
The challenges of finding a home in 2023
Finally, Fortune discusses the challenges first-time homebuyers face in today’s real estate market.
Despite the surge in home sales, many first-time buyers are struggling to find affordable homes in their desired locations. The article notes that this is due to a combination of real estate market factors, including rising home prices, low inventory, and high demand.
One solution proposed by experts is for buyers to consider purchasing homes in up-and-coming neighborhoods, where prices may still be relatively low.
Overall, the US real estate market is experiencing both positive and negative trends. While renters in cheaper markets may face rising rents, buyers benefit from lower mortgage rates and increased sales.
However, challenges remain for both renters and buyers, and it remains to be seen how these trends will continue in the coming months.