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Struggling to buy the inflation interest rate double whammy

Struggling to buy the inflation interest rate double whammy

Inflation, higher interest rates, and low inventory are putting buyers off. The cost of an existing home in the U.S. fell the furthest in March on an annual basis, 0.9 percent to $375,700 since January 2012, as a slowdown in the market began to break sales. The number of homes sold declined 2.4 percent from February to 4.44 million, the National Association of Realtors said. From a year earlier, sales dropped 22 percent.

The slowing market is being driven by a variety of factors, with inflation, higher interest rates, and low inventory being the most prominent reasons for buyers to stay away. Higher inflation has caused the prices of goods and services to rise, which has led to a decrease in consumer spending. This has had a corresponding effect on the housing market, as fewer people are willing to invest in a home when prices are rising.

Additionally, the interest rates on mortgages have been climbing for the past few months. This increase in interest rates has made it more difficult for buyers to afford a home and has caused some buyers to either delay their purchase or to look elsewhere for housing. Finally, the low level of inventory has further tightened the market. As fewer homes are available, buyers are unable to find a home that meets their needs or budget. This has caused some buyers to delay their purchase or to look elsewhere for housing.

The current market conditions are making it more difficult for buyers to purchase a home, but it is important to remember that existing home sales may not have fallen off a cliff. In many housing markets across the country, when housing costs go up, potential buyers don't just vanish, they delay their purchase. They wait, ready to pounce at the smallest improvement in housing affordability.

Despite the current market condition, there is still plenty of opportunity for buyers to purchase a home. Buyers simply need to be prepared to act quickly when the time is right and to be mindful of the market conditions. With some patience and the right strategy, buyers can still find a great deal on a home in a competitive market.

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