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Title: First-Time Buyers Must Earn $120,000 To Afford The Average Home
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URL Source: https://www.zerohedge.com/economics ... arn-120000-afford-average-home
Published: Apr 24, 2024
Author: Tyler Durden
Post Date: 2024-04-24 19:36:09 by Horse
Keywords: None
Views: 28
Earlier today we reported that for at least 40% of Americans - up from 27% just two years ago - the American Dream is dead and buried and has been replaced with the American nightmare: renting for life. And here's why: according to a new survey from Clever Real Estate, a St. Louis-based real estate company, thanks to the galloping housing inflation, the median-priced home in the U.S. now costs $332,494, with NAR and Census Bureau data reporting that the median Existing and New Home sale price has risen to $393,500 and $430,700... . meaning prospective buyers need an annual income of at least $119,769 to afford it with a 10% down payment. That's about $45,000 more than the typical household earns annually ($74,755). Even with a 20% down payment, home buyers would need to earn at least $98,202, still well above the typical salary. The last year that the median buyer put down 20% was 1989, according to data from the National Association of Realtors (NAR). Today, the median buyer puts down just 15% of a home's purchase price. The median U.S. income earner ($74,755) with 10% down could only afford a home that costs $207,529 — 38% less than the current median-priced home. A median-income family aiming to afford a median-priced home would need a hefty 45% down payment, or mortgage rates would need to drop from the current rate of 7.2% to 4% to make it work. Even with a savings rate of $1,000 each month, it would take a household five and a half years to amass the $66,500 needed for a 20% down payment on a home priced at the median of $332,494. As it stands, 61% of Americans find themselves priced out of the market even with a 20% down payment. The median home is affordable for median earners in just four states (West Virginia, Ohio, Iowa, and Indiana)... .. and only six of the 50 largest metro areas: Pittsburgh, PA Cleveland, OH St. Louis, MO Memphis, TN Indianapolis, IN Birmingham, AL Unsurprisingly, Los Angeles is the least affordable city, where buyers need an income of a whopping $249,471 to comfortably afford a median-priced home — nearly three times the actual median income of $87,743. Read the full report at: http://www.listwithclever.com/research/how-much-house-can-i-afford-2024 Poster Comment: Median List Price: The median list price of homes in Tennessee, recorded on March 31, 2024, is $384,967. This metric reflects the midpoint of all homes listed for sale, serving as a benchmark for sellers and buyers. Based on all homes sold in the last 12 months. The sold price of homes in Nashville has remained the same since last year. Summary: The median home sold price in Nashville was $525,101 in March 2024, up 0.5% from last year, and the median price per square foot was $313.
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