While inflation is to be expected over time, it’s raised some heavy concerns over the past year. Lumber and wage rate increases created a concoction ideal for exuberant home price growth, but also put home affordability in a place where it was out of reach from some working Americans who previously had the power to purchase. Let’s take a short look at some of the numbers over the past 3 years to compare the difference.
In El Paso, as we speak, the median sales price is at $208.4k. Between the same time last year (2020) and now, we’ve noticed a $25.5k increase in the one year alone. From 2019 to now, we’ve witnessed a $41.9k increase, but if you take note that would equate to only a $16.9k ($41.9k-$25.5k) difference between the years 2019 to 2020. Between now and 2018 we’re looking at over a $50.2k increase. If you take into account the growth between 2019 and 2018, you’ll notice it is nearly dwarfed by this years inflation rate, with only an $8.3k difference ($50.2k-$41.9k).
Isaac J. Olmos