US Housing Market: Average Price Hits Record $407k as Sales Slump

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    The Spin

    Narrative A

    Home sales have now returned to the more sustainable - and rational - levels of 2019, before the pandemic-induced spending spree set in. This is good news: although high mortgage rates will be a challenge for some buyers, they will also slacken demand and help to bring prices back to reality.

    Narrative B

    Higher mortgage rates may be necessary to cool off inflationary pressures, but they're making homes even more unaffordable for the vast majority of Americans. Homes that were affordable for middle-class Americans with a monthly budget of $2,500 are now well out of reach given the recent rate hikes and their impact on mortgage rates.

    Metaculus Prediction


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