Buying a home in the United States has become an impossible task … a huge shock for Americans

Americans who want to buy homes are facing a major shock due to the rise in house prices in the United States, in addition to the fact that the sector is currently affected by the high interest rates charged on loans.
To buy a home and become the lucky owner of it, all you have to do is place a quick bid and bid on all interested buyers for $ 100,000.
Liz Stone, who has been trying to buy a home in the suburbs of Washington for three years, told AFP: I have seen about 150 homes since 2019.
Sixty submitted four bids exceeding the asking price, and the additional amount she bid amounted to one hundred thousand dollars, but all her requests were rejected.
Liz Brent, founder of the real estate agency Joe Brent in Silver Spring, Maryland, on the Washington border, notes that homes in the area around the capital sell for 4 to 5 percent more than their starting prices.
Brent noted that one of the homes was sold for more than one million dollars, while it was initially offered for 840,000 dollars.
She says that “one person wins and 20 others lose” in each sale, given the large number of people who want to buy and the lack of supply to buy.
The number of housing units was already low when the stagnation in property sales continued due to the Covid-19 pandemic, and construction companies were unable to bear the situation due to a shortage of workers and disruptions in global supply chains.
The decline in the number of housing has led to a rise in prices, which has prompted the Federal Reserve to raise interest rates to reduce market pressure due to inflation.
Brent says buyers must be willing to “take a big risk” in the circumstances, and must be able to pay large sums without requiring sellers to incur any emergency expenses such as a home inspection.
Stone sold her home about a year ago to get cash to buy a home, but since then she has been forced to rent housing as prices have continued to rise.
She narrows her search because her nine-year-old son, Emmett, is happy at his new school.
With a smile, Stone expresses her frustration and says, “I missed my chance to own a home.”
Buyers are currently facing another challenge, namely the rise in interest rates imposed on loans, after it reached low levels not seen before during the pandemic period.
The interest rate charged on a 30-year fixed-rate loan, the most common in the United States, has risen to 5.11 percent, the highest level since 2010, compared to 2.96 percent last year.
This rise in interest rates will make real estate out of reach for many buyers.
But Rory Molida, 30, and Stuart Malick, 29, were lucky enough to buy a two-bedroom apartment in Washington with parking, after their search for an apartment lasted only four months, during which they turned down three offers. “We are very happy,” says Molida.
But interest rates began to rise rapidly between their search, which began in October, and their purchase of the home in February.
Molida points out that the interest rate was 3.5 percent when they started looking for a home, but “it was witnessing a slight increase that coincided with every home we inspect.”
The higher interest rate means that the monthly installments to be paid will be much higher than expected.
High prices and rising interest rates began to curb sales and increase the number of homes available, which reduced market pressure.
Lawrence Yun, chief economist of the National Association of Brokers, suggests that prices should rise only 5 percent this year, well below the 17 percent jump last year.
Brent believes a limited rise in the price of homes will not help solve the deficit problem.
“We are now seeing a huge shortage and it is impossible for the available homes to return to a healthy level, so we will see a steady rise in prices,” she says, warning that the rise will exceed the pandemic period, and can continue. for another decade.
Yun notes that a large number of construction companies went bankrupt in the wake of the global financial crisis of 2008, which affected the real estate market.
Although conditions are expected to improve in Washington and its suburbs, some markets will still see strong demand.
“The areas that include affordable housing and many job opportunities will continue to see high sales rates, as well as areas where affluent retirees are moving and buying property with cash,” including Atlanta, Georgia, San Antonio, Texas and Florida, he says. .

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