Summary: New data collected in January 2018 shows a current shortage in the national housing market, with a 9.5% decrease in housing inventory in the last year and 32 straight months of a decrease in the supply of houses. This has resulted in the steady increase of the median house price, now up to $240,000, and fewer houses being bought. However, a higher price means a higher down payment on a house, making it much more difficult for first-time buyers and those working minimum wage jobs to be able to shell out enough money to buy a house in the current market. Right now, the buyer's best hope is for the increasing number of houses currently under construction to substantially increase the supply of houses, therefore reducing the prices and making it possible for more people to buy a house.
Questions:
1. Why do you think that the number of houses in the market has steadily decreased in the last few years, even though our economy has grown?
2. Is there a way the government could be involved in making it easier for first time buyers and/or minimum wage earners to buy a house, and, if so, should the government get involved?
Link– Reuters
1 comment:
I think that there is a decrease in housing sales because especially, here, a lot of people are moving around for jobs. In the Bay Area for example, a lot of people have moved so that they can be near their jobs, but since houses are expensive, a lot of people rent. My family owns some houses in the area and rent them out because it is usually a cheaper alternative especially if someone has to move across the country on an assignment for their job.
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