All articles tagged with #median home price
The report highlights that the traditional 30% income rule for home affordability is now unrealistic, with Americans needing to spend an average of 44.6% of their income on median-priced homes, and only a few cities like Pittsburgh, Detroit, and St. Louis remain affordable within that threshold.
Existing-home sales in the U.S. decreased by 1.9% in April, with declines in all four major regions. The total housing inventory increased, and the median existing-home price rose to a record high of $407,600. First-time buyers accounted for 33% of sales, while all-cash sales remained at 28%. Mortgage rates averaged 7.02%, up from 6.39% a year ago. The Northeast, Midwest, and South experienced year-over-year sales decreases, while the West saw an increase.
US existing home sales dropped 4.3% in March to a seasonally adjusted annual rate of 4.19 million units, with sales falling in the South, Midwest, and West but rising in the Northeast. Higher interest rates and house prices are cited as factors affecting buyer activity. The median existing home price increased 4.8% from a year earlier to a record high of $393,500 in March, while housing inventory jumped 4.7% to 1.11 million units. Despite the increase in supply, the market remains constrained, with first-time buyers accounting for 32% of sales and all-cash sales making up 28% of transactions.
Existing-home sales in the U.S. decreased by 4.3% in March, with declines in the Midwest, South, and West, but a rise in the Northeast. The total housing inventory increased, and the median home price rose to $393,500. First-time buyers accounted for 32% of sales, while all-cash sales decreased to 28%. Mortgage rates also increased to 6.88%.
A new analysis from Bankrate.com reveals that in 22 states and Washington, DC, a six-figure household income is now required to comfortably afford a typical median-priced home, a significant increase from just six states and the District of Columbia in January 2020. Factors contributing to this include rapid home price appreciation outpacing wage growth, limited housing supply, and the "lock-in effect" of higher mortgage rates and home prices. The West Coast and Northeast require the highest household incomes, while the South and Midwest require the lowest. Affordability changes over time are evident in the significant increase in income needed to buy the average home today compared to 2020, with the Sun Belt becoming less affordable due to an influx of new homebuyers.
A new report from Redfin reveals that the typical American household needs an annual income of $115,000 to afford the median priced home, which is $40,000 more than the average household makes. In fact, a six-figure income is required to buy a median priced home in at least 50 U.S. cities. Rising home prices, limited supply of existing homes, and high mortgage rates are contributing to the affordability crisis. Renting is becoming a more affordable option in most major markets, except for Detroit, Cleveland, Philadelphia, and Houston. Experts advise aspiring homeowners to pay down debt, boost savings, and wait for more inventory to become available.
Sales of new single-family homes in the US rose 4% MoM and 12% YoY in April due to low inventory of existing homes and robust sales in the South and Midwest regions. The median sales price of new single-family homes in April declined to $420,800 from $455,800 in March. The inventory of new houses for sale at the end of April stood at 433,000, representing a supply of 7.6 months at the current sales rate, in contrast to inventory of existing homes, which stands at 2.6 months of supply.
Existing-home sales in the US decreased by 3.4% in April, with all four major regions registering month-over-month and year-over-year sales declines, according to the National Association of Realtors. Total housing inventory registered at the end of April was 1.04 million units, up 7.2% from March, while the median existing-home price for all housing types in April was $388,800, a decline of 1.7% from April 2022. First-time buyers were responsible for 29% of sales in April, up from 28% in both March 2023 and April 2022.