Excessively high prices and interest rates on mortgage loans have turned away a large number of buyers in the US. A decrease of 4.7% was reported in the sales of single-family houses, to 634,000 transactions in April this year compared to the same month last year. Expectations are that no more than 678,000 sales will be realized in 2024.
The Federal Reserve is of the opinion that mortgage interest rates should remain at their current high levels. This will bring the natural end of the peak in US home and single-family home sales.
The situation is particularly unpleasant for construction contractors. To avoid it and attract more buyers, they offer price incentives, but their effect is far from satisfactory.
Demand continues to exceed supply, but it has significantly decreased and it is not excluded that it will equalize by the end of the current year.
As for prices, their annual growth is 9%. According to analysts, this trend will continue for the next 10 years. Rent growth has also been observed and will remain a trend in the future.
The picture is such that not only are low-income Americans unable to afford housing, but an increasing number of middle-income Americans are considering making such an expensive investment.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE