fbpx
22121 Canyon Crest Dr Mission Viejo, CA 92692 +1 949-632-4347

Rising home prices and interest rates squeeze all but the richest homebuyers

Rising home prices and interest rates squeeze all but the richest homebuyers

President Donald Trump’s short-term stimulus is pushing up borrowing costs and eliminating deductions in some markets.

Although growth in the housing market is slowing, the number of million-dollar homes in the United States is on the rise, creating pockets of affluence in a housing market experts say is becoming increasingly unaffordable.

New research from real estate site Trulia found that roughly 3 million homes across the country today are worth $1 million or more. This amounts to around 3.6 percent of the entire housing market; just six years ago, only 1.5 percent of all homes had million-dollar price tags.

Trulia found that the number of seven-figure homes and the highest rate of increases are overwhelmingly concentrated in California. In San Francisco alone, four out of five homes crack the million-dollar threshold. Outside of the Golden State, Honolulu, Seattle and Long Island, N.Y., also saw major increases in homes worth $1 million or more.

At just over 14 percent, San Jose had the highest year-over-year increase in million-dollar homes, according to Trulia’s report.

“The areas I’m concerned about are the areas that aren’t responding where prices are still accelerating, like San Jose,” said Daren Blomquist, senior vice president at Attom Data Solutions. “That’s a sign that these areas have such constrained inventory that there are hardly any properties just sitting vacant. That’s continuing to put upward pressure on prices,” he told NBC News.

Related articles

Can I Get A Mortgage With Bad Credit?

Can I Get A Mortgage With Bad Credit?

Avoid applying for too much credit and make sure you keep up to date with anything you already have. Each payment made for existing credit that is on time and in full helps to build that credit score! Sometimes, financial problems catch you out and before you know it, you […]

Learn More
Tips on How to Pay Your Mortgage on Time

Tips on How to Pay Your Mortgage on Time

While buying the perfect home can be a dream come true, paying for the mortgage that might come with it can be a very daunting task, especially if you need to settle hundreds of thousands of dollars’ worth of debt. Still, that doesn’t mean you won’t be able to take […]

Learn More
Retired borrowers set to become the fastest-growing mortgage sector

Retired borrowers set to become the fastest-growing mortgage sector

Lending into retirement is expected to be the fastest growing segment in the specialist mortgage market over the next two years. According to the latest Financial Adviser Confidence Tracking (FACT) Index from Paragon, nearly 80% of mortgage intermediaries are expecting a retirement lending boom. Today lending into retirement accounts for […]

Learn More

Leave a Reply

Your email address will not be published. Required fields are marked *