- As a recent National Association of REALTORS® (NAR) study found, homeownership is the greatest wealth source among families.
- A typical homeowner could accrue up to $240,200 in housing wealth by living in their home for just 10 years.
Because of higher rates, the housing market is loosening up. Moderation in the market can provide more opportunities for both buyers and sellers who’ve had difficulty finding a new home that fits their criteria. In contrast, rents are still rising. The national median U.S. rent is now over $2,000. (You can read more about the cost of renting versus buying here.)
“The typical U.S. home sold below its asking price in August for the first time since March 2021. For the last year and a half, the typical home has sold for over its asking price. That means buyers are having some success negotiating prices down, something that was essentially unheard of at the height of the pandemic homebuying frenzy,” Redfin confirms.
While rising rates and home prices can seem daunting, especially if you’re a homebuyer, it may help to remember that today’s rates and prices are only returning to what’s typical for the housing market. Even though they’ve increased, mortgage rates remain below the historical average. Home price growth is also still below 5 percent, a rate that, Black Knight says, is “more in line with long-run averages.”