US Housing Market

Apollo’s chief economist released his U.S. Housing Outlook titled “Expansion Continues.” He discusses higher mortgage rates weighing on demand, housing inventory remaining low but strong wage growth and stock markets trading near record highs, the wealth effect seems to counter balance.

Apollo’s 10 facts about the U.S. housing market, with some interesting statistics and historical charts.

• US homes are getting smaller: The size of new homes being built has declined by 12% since 2016

• The median age of all homebuyers is now 49 years old, up from 31 in 1981

• Our home price model predicts that house prices will increase 10.8% over the coming year

• 40% of US homes don’t have a mortgage

• The average number of homes sold per real estate agent every year is 21, down from 54 in 2004

• Households’ equity in real estate is at a record-high 73% of housing values

• A record-high 36% of Americans say they would rent if they were going to move

• More than half of all mortgages outstanding have an interest rate below 4%

• 95% of mortgages outstanding are 30-year fixed rate

• 63% of all mortgages outstanding were issued after 2018

You can view the Apollo presentation by clicking on the image below.

Check out our recent housing post titled “Rent vs. Buy” where we review the pros and cons of each, and that there is no one-size-fits-all answer. Higher mortgage rates and higher prices have made these decisions more difficult but it’s important to evaluate your own financial situation and goals to make the best decision for you.

If you have any specific housing or mortgage questions, we can put you in touch with some of our trusted experts. Reply to this email or reach out to Sandbox (contact us) to discuss in more detail.