"Those who have listed but not sold their homes are fishing in a much smaller pond because as of this summer, homeownership affordability has dropped to its lowest level on record. According to Redfin, the typical homebuyer now needs to earn $112,131 per year just to afford the median-priced home of $447,035. That's roughly $25,000 more than what the typical household actually makes. Think about that for a second, we've created a housing market where the median home is unaffordable for the median earner."
"The peculiar nature of the pandemic housing frenzy has left prices high (though they are falling in some of the once-red-hot markets) and mortgage rates for 30year fixed loans hovering at 6.5% to 7%, which is where they have been for about a year. On top of those basic home ownership costs, premiums for insurance have jumped, especially in flood, fire and storm-prone areas."
Five unsold houses on one block reflect a broader market inertia where sellers show little motivation and price cuts are rare. Pandemic-era price gains remain elevated, though some formerly hot markets are cooling. Thirty-year mortgage rates have hovered around 6.5–7% for about a year, and insurance premiums have risen, especially in flood, fire and storm-prone areas. Affordability has fallen to record lows: the typical buyer now needs to earn about $112,131 to afford the median $447,035 home, roughly $25,000 above the typical household income, forcing many first-time buyers to delay homeownership.
Read at www.mercurynews.com
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