For many, the idea of buying a reliable car that won’t break the bank can feel like a pipe dream. Until we overcome the problem and get more cars off the assembly line, consumer demand will only drive up prices. As dealer inventories dwindle, car buyers are turning to used cars instead, creating fierce competition in both the new and used car markets.
But it’s not just cars. The housing market is also growing significantly. As of the second quarter of 2022, the median home sale price was $440,300, up 15% from the same period in 2021. Historically low interest rates and increased demand for housing during his COVID-19 pandemic have created a shortage of housing. Sales — and record high prices across the country. Although prices remain high, home sales have fallen due to the height of the pandemic. July 2022 home sales are down 20% year-over-year.
To examine trends across U.S. consumers in car and home prices, Jerry compiled data from the Bureau of Labor Statistics and Realtor.com to find out where the two biggest consumer purchase categories were in price over the past five years. I understand how things have changed. The Consumer Price Index for New and Used Cars measures the prices paid by consumers in cities containing approximately 88% of the total population. The index change measures the rate of inflation between two periods.