Can't have a housing price collapse if the government just retroactively manipulates the data pic.twitter.com/oGINRVnovz
— Darth Powell (@VladTheInflator) November 24, 2024
Borrowers didn't improve, they just manipulated how they calculate credit scores. pic.twitter.com/o8FDA02MY8
— Darth Powell (@VladTheInflator) November 24, 2024
Homes “unaffordable” in 99% of nation for average American
The typical American cannot afford to buy a home in a growing number of communities across the nation, according to common lending standards.
That’s the main takeaway from a new report from real estate data provider ATTOM. Researchers examined the median home prices last year for roughly 575 U.S. counties and found that home prices in 99% of those areas are beyond the reach of the average income earner, who makes $71,214 a year, according to ATTOM.
Housing experts point to couple trends driving up housing costs. Mortgage rates have topped 7%, adding hundreds of dollars per month to a potential house payment. At the same time, homeowners who locked in at lower mortgage rates during the pandemic have opted not to sell out of fear of having to buy another property at today’s elevated rates, depleting the supply of homes for sale.
“The only people who are selling right now are people who really need to move because of a life event — divorce, marriage, new baby, new job, etc.,” Daryl Fairweather, chief economist of Redfin, told MoneyWatch. “That lack of new inventory is keeping prices high.”
As of August, the national median existing home price was $407,100, up 3.9% from a year ago, according to the National Association of Realtors. The average interest rate on a 30-year home loan was 7.19%, up from 6.48% at the beginning of 2024, according to Freddie Mac. Prices will remain unaffordable as long as mortgage rates continue to rise, Fairweather said.
Views: 40