Housing Costs Rising More Slowly

Anya’s Market Bites:

The cost of housing continues to climb, but the pace is starting to slow. The latest Consumer Price Index (CPI) report shows overall inflation rose 2.7% year-over-year in November, while housing costs increased by 0.3% for the month—slightly less than the 0.4% rise in October. Housing remains a major contributor to inflation, accounting for 45% of the total.

Although the Federal Reserve is expected to lower interest rates again soon, significant relief for household budgets may still take time. Flat wages and persistent inflation are adding to financial challenges for many families.

Key Takeaways:

• Inflation Trends:

  • Overall inflation rose 2.7% year-over-year in November.

  • Housing costs increased 0.3% month-over-month, slowing from October's 0.4% rise.

• Challenges for Homebuyers:

  • High housing costs continue to strain many households, especially those with stagnant wages.

  • Even with expected rate cuts, noticeable cost relief may take a while.

• Looking Ahead:

  • Political shifts, such as potential tariffs and immigration policies, could raise housing costs further and lead to labor shortages in construction.

  • Experts predict a divided housing market in 2025:

    • Higher-income buyers and those with home equity will have more opportunities.

    • Moderate-income families may face tougher budgets and limited options.

As the market evolves, staying informed is crucial for anyone planning to navigate housing in 2025.

(Source: HousingWire.com)

All the best,

Anya Derebenskiy

(949) 942-5183

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