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People are still buying and moving houses despite the current situation


People are still buying and moving houses despite the current situation where purchasing a home has become quite challenging due to high interest rates.


The graph below illustrates how housing affordability has been changing. In the graph, a value of 100 means that a household with median income in the entire United States can afford a median-priced home with a mortgage loan. As you can see, affordability has decreased since 2022 and is currently below 100. In other words, the cost of homes and mortgage rates is rising faster than median incomes.


In this situation, you may wonder, "Are people still buying homes?" The answer is yes; people are still buying and moving houses. According to the National Association of Realtors (NAR), approximately 3.96 million homes are expected to be sold in 2023. If we break this down to a daily basis, it means around 10,849 homes are being traded every day.


While this figure is lower than in previous years, people continue to buy homes. The primary reason is that home prices are rising faster than incomes, and there is a high probability that this trend will continue in the future.


If you have any further questions, please feel free to contact me anytime. I will be happy to provide more helpful information.









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