Photo: CoreVest Finance Antioch / Courtesy
By: Luis Diaz Updated 17 Sea 2022, 11: 000 pm EDT
Bank of America (BofA) announced that currently those looking to buy a home face prices that are not affordable at all, a situation that makes Americans Think twice before buying a property.
Alexander Lin and Jeseo Park, analysts at the financial institution, reported in a note from BofA Global Research that potential buyers face very high initial payments, which makes it difficult for them to acquire a property.
“Consumers remain firm in their interest in buying, but they are not sure”, the analysts pointed out in the report.
Reasons why housing is not affordable
-Mortgage rates are higher and have shown no signs of going down.
– The mortgage rate is fixed at 35 average years represents 4.26% in the current month of March. This figure is notoriously higher than the average that occurred in December of 2022 which registered 3.26%.
-Depending on the state and city, the initial payments to acquire housing, in general, have skyrocketed.
– The problems of the supply chain continue to increase the restrictions on the available inventory, for this reason, the construction deadlines have been extended, a situation that limits the supply of real estate. In contrast, demand has been on the rise and this factor means that costs also rise .
The impact of extra expenses when purchasing a home
In a report by Clever, a real estate link platform, it is highlighted that families should not only think about the costs of the monthly payments and the initial payment, but also in the expenses generated by a home, especially in regarding the payment of public services, maintenance, property taxes, as well as homeowner’s insurance insurance.
All these expenses, according to the study, could add an additional expense of more than $15,000 annual dollars, a situation that unbalances the finances People who have acquired a property or who plan to do so. According to Clever, these costs have increased by more than $2,000 dollars from 1200.
The impact of extra expenses when buying a home has had an effect on the fact that so far 2022, 60% of the owners have admitted that they have felt some kind of remorse after buying the property, this figure is almost double compared to 2019, when it represented 35%, according to Clever.
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