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.
NOVEMBER HOME SALES UP AT FASTEST CLIP SINCE JANUARY
Some of the realtor’s biggest problems, she said, included windows delivery times and lumber costing three times its normal price.
“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.