The home-buying market faces many headwinds in 2024 as would-be buyers find it more difficult to find and afford a home. High mortgage rates, the rising cost of building materials, and overvalued homes make it tough for would-be sellers to move to other properties, too. Fox Business reports on the states where the annual change in prices has made homes way overvalued.
Here are the top five states with overvalued homes, with the related annual change in price:
- Arkansas – 9.4 percent
- Tennessee – 8.3 percent
- South Carolina – 7.9 percent
- Montana – 5.6 percent
- Alabama – 2.2 percent
At the end of 2023, homes nationwide were rated overvalued by 11.1 percent. This was found in about 90 percent of all U.S. metropolitan areas. The ongoing spike in prices has reduced the supply of available homes for sale by 34.3 percent compared to pre-COVID pandemic levels in early 2020.
Another major factor holding down the housing market is the fact owners with low mortgage rates are reluctant to sell and give them up. Realtors refer to this as the “golden handcuff” effect. The inability to get a great rate for another home makes many would-be sellers stay put.
Retirement Shouldn’t Be a Time of Financial Stress
You should be able to afford a nice home in retirement. That’s why Council of Seniors is fully dedicated to getting Congress to pass The SAVE Benefits Act. Because the annual Social Security cost-of-living adjustment (COLA) hasn’t kept up with inflation in recent years, we must get this bill passed. Once we succeed, eligible seniors will recover the $581 missing from their benefits.
That’s why we need you to sign our petition right away. Please tell friends and neighbors they can help, too! Congress needs a wake-up call about the growing number of Americans supporting this effort.
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