The housing market hasn’t been this hot since 2006.
Sales of existing homes rose 8.5% in 2021, totaling 6.12 million, the National Association of Realtors reported. This as inventory levels fell to an all-time low of 910,000.
House hunters have enjoyed near-record low mortgage rates as they look to trade up or become first-time homebuyers. The fixed rate for a 30-year mortgage has ticked up to 3.56% from 2.77% a year ago but remains attractive. The average loan size of a mortgage hit a new record last week of $418,500, according to the Mortgage Bankers Association.
Although sales in December cooled, falling 4.6% to 6.18 million, the market remains tight with 30% of sales driven by first-time homebuyers.
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Many in our neighborhood have relocated due to rising taxes. The consequence is twofold. First, since primary residence property tax is frozen for seniors, they have enjoyed colossal increases in home value. Non-seniors avail themselves of increased prices and move to less expensive neighborhoods. Buyers naturally are in a higher income group. The bottom line is our neighborhood consists of old and higher income people.