![]() Getty Images/iStockphotoĭuring the pandemic, home prices shot up due to low mortgage rates and remote work, which was the start of the home affordability crisis. “The most affordable homes for sale are no longer affordable to people with lower budgets due to the combination of rising prices and rising rates.” Redfin Mortgage rates continue to stall prospective buyers from affording their first home. “Buyers searching for starter homes in today’s market are on a wild goose chase because in many parts of the country, there’s no such thing as a starter home anymore,” Sheharyar Bokhari, Redfin senior economist, said in the report. ![]() The record $243,000 price tag is up up 2.1% from a year earlier and up more than 45% from before the coronavirus pandemic. The average earnings needed is up 13% ($7,200) from a year ago. The current average for a starter home runs $243,000 - and that price tag has become out of reach for many Americans, if in fact they can even find a starter home with the current high demand.Ĭalculating the average nationwide, first-time homebuyers must earn at least $64,500 a year to cover costs of an entry-level home while at the same time ensuring it doesn’t exceed 30% of their income, according to real estate brokerage Redfin. With mortgage rates remaining at a staggering 7%, the hopes of many hoping to secure their first home has dwindled. ‘Big Short’ investor who foretold 2008 housing catastrophe warns of new financial disasterĪ Nobel? Ben Bernanke belongs in the Economics Hall of Shame Angelo Mozilo, ex-CEO of Countrywide and face of 2008 mortgage meltdown, dead at 84 ![]()
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