Revealing the Reasons Behind Home Affordability Struggles: Real Estate Experts Explain Why the Housing Market Hasn’t Thawed

The housing market has been in a state of freeze for some time now, with home affordability not showing any signs of improvement. Real estate experts have weighed in on the matter, citing several factors as to why this is the case.

Redfin’s deputy chief economist told Insider that “a year ago it was insanely unaffordable and maybe now it’s just a little less insanely unaffordable.” This suggests that while there may be slight improvements, overall prices remain too high for most people to afford.

Experts attribute this lack of progress to an insufficient number of homes available on the market coupled with rising demand from potential buyers. The combination creates competition among buyers and drives up prices even further than they already are – making them out of reach for most people looking to purchase a home.

Moreover, low-interest rates make buying more attractive but do nothing when it comes to reducing costs associated with purchasing property, such as closing fees or taxes; these expenses still need to be taken into account when calculating total cost, which can often put homeownership out of reach despite lower mortgage payments due to low-interest rates.

In conclusion, real estate experts suggest that until supply increases significantly or other measures are taken by governments or financial institutions then we should not expect much change anytime soon in terms of improving home affordability across markets worldwide.