Inflation has hit a new peak within the past few months as interest rates have topped forty year records. Amid the current rate hike, standing at 4.5%, representing the second in a series of three passed by the Federal Reserve, housing prices have gone for a nose dive. Zillow, one of the nations premier rental and home advertising services, shed millions of dollars from its mortgage inventory sheet, taking a loss of up to $1.4 billion. In addition, buyers who previously scooped up deals with a suburban exodus have seen mortgage prices skyrocket as return to the office culture looms,with out of state city residents outbidding locals price unseen.
Recent housing trends show that rental prices alone in states like New York,California, and Florida lead the nation topping out at $3420 dollars for modest one bedrooms. This puts the mortgage equivalent price at $2,071 or slightly lower . The numbers represent a nearly 20% increase over the same period one year ago,doubling yet again from 2020. Meanwhile, developers are continuing to build in oversaturated markets like Spokane,Arizona, and Las Vegas despite ongoing rumblings from the Dallas Bank of Federal Reserve.
