NASHVILLE, Tenn. (WTVF) — If you tried to buy a home recently, you know it is not an easy task.
CBS News reports consumers are facing bigger price tags, are ditching typical homebuying steps such as inspections, or are abandoning the idea of buying a house altogether during the pandemic. These trends have some wondering if the nation is repeating the housing bubble from the early 2000s.
The Federal Reserve Bank of Dallas is warning that there are signs of a brewing housing bubble. There are signs of a market tipping point based on a number of factors Dallas Fed economists considered.
"A housing bubble occurs when real estate demand outpaces supply, causing the average price of properties for sale to rise – often at a high or alarming rate," Rocket Mortgage explains on its website.
According to Freddie Mac, mortgage rates for a 30-year fixed mortgage are higher than they have been since 2018.
"Mortgage rates continued moving upward in the face of rising inflation as well as the prospect of strong demand for goods and ongoing supply disruptions. Purchase demand has weakened modestly but has continued to outpace expectations. This is largely due to unmet demand from first-time homebuyers as well as a select few who had been waiting for rates to hit a cyclical low," Freddie Mac said.
For perspective on what the Nashville area is experiencing in terms of pricing, Greater Nashville Realtors said the average price for a home in February was around $446,000.
According to CBS News, the chief economist at Realtor.com said rising mortgage rates that make housing less affordable should slow price increases, but right now the rates are moving the other way.
