Americans squeezed by rising housing costs
Shelter costs, which account for one-third of the CPI, rose 3.3% from a year ago
FOX Business' Madison Alworth explains how homeowners and renters alike are feeling market pressure as mortgage and rental costs surge.
Homeowners and renters alike are feeling a nationwide crunch due to rising housing costs.
In addition to a recent mortgage rate surge, the latest Consumer Price Index (CPI) data showed shelter costs, which account for nearly one-third of the CPI, rose 0.4% in December and 3.3% from a year ago.
Meanwhile, inflationary pressures make renovation costs, furniture and utility purchases even more pricey and delay the home-buying process.
"The owner had planned to list this house in August of last year, but it was actually listed last week because of the lack of inventory," RE/MAX Select New Jersey realtor Pamela Feixas told FOX Business’ Madison Alworth.
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Some of the realtor’s biggest problems, she said, included windows delivery times and lumber costing three times its normal price.
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"It made it very difficult to get [the home] ready in time. We had over a four [month] delay," Feixas said.
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Potential buyers are eager to enter the market before rates go even higher, according to Feixas.
While Freddie Mac also anticipates higher rates, the larger challenge is a lack of supply. Home supply fell 18% year-over-year in November, driving high demand and pushing housing prices up 15%, according to Redfin.