Pgiam / Getty Images/iStockphotoThe housing market has been grueling for many would-be buyers, making the dream of homeownership very difficult to attain. Inflation, soaring mortgage rates, and low inventory — which is further putting pressure on prices — are all contributing to the issue.Also: Don’t Buy a House in These 5 US Cities That Have Shrinking Populations and Fewer BuyersExplore: Become a Real Estate Investor for Just $1K Using This Bezos-Backed StartupSome states — such as Arizona — are also seeing some cities become unaffordable. With a median home price of $525,000, the state is well above the national median home price of $442,500, according to Realtor.com.“There are a few metro areas in Arizona where prices are still below the national median, but price growth has outpaced national price growth,” said Realtor.com‘s senior economic research analyst Hannah Jones. “These areas have become much less affordable relative to the national market over the last five years, and a few areas continue to see climbing prices.”According to Suzy Minken, a realtor with COMPASS, although we are seeing a rise in inventory as part of the traditional Spring selling season, the inventory of homes in many areas continues to remain low and insufficient to meet the over-supply of buyer demand.“Home prices are being pushed up, especially in sought-after towns in commuting distance to major urban areas,” said Minken. “And as home prices continue to rise, some potential buyers are being priced out of areas.”Minken added that if we see a price drop in mortgage rates later this year, that might not be enough of a difference to make these towns more affordable to some buyers.“One reason is because there are “buyers waiting in the wings” who will re-enter the home buying search process and increase the competition for homes. More buyer competition often translates to multiple offers — and we all know what that means!,” she added.Here are some of these Arizona cities:Wealthy people know the best money secrets. Learn how to copy them.Lake Havasu-KingmanIn May 2019, the median listing price in the area was 6.4% below the national median at $299,000, said Jones.“However, by May 2024, prices had climbed 43.6%, reaching $430,000, just 2.8% below the national median,” she said. “Though prices in the area are below their May peak from 2022, prices remain elevated relative to pre-pandemic, and affordability has deteriorated.”SaffordIn May 2019, the median listing price in the area was 33.2% below the national median at $214,000, she said. Yet, by May 2024, prices had climbed 75.9%, reaching $376,000, just 15% below the national median.Story continues“Prices in the area continue to climb and are up 14.5% year-over-year, signaling that affordability conditions continue to worsen in the area,” said Jones.Sierra Vista-DouglasIn May 2019, the median listing price in the area was 38.5% below the national media …
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