Posted on 11/13/2023 7:25:14 AM PST by Diana in Wisconsin
The income of a typical homebuyer in the United States surged to $107,000 from $88,000 last year, as home affordability precipitously worsened, according to an annual report from the National Association of Realtors.
The 22% jump was the highest annual increase on record, and puts homeownership out of reach for many families in the United States, where the median income is about $75,000, according to the Census Bureau.
Buying a home has become much harder for people as mortgage rates surged over the past two years and home prices continue to rise due to very low inventory.
“The household income for those who successfully purchased homes jumped by nearly $20,000 and topped six figures for only the second time in our records,” said Jessica Lautz, NAR deputy chief economist and vice president of research.
As a result, buyers’ typical downpayments jumped to the highest share of home purchase price in two decades — 8% for first time homebuyers and 19% for repeat buyers — as buyers pulled together larger downpayments to break through competitive bidding wars or to lower the amount of the purchase that was financed with a mortgage.
“In a still-competitive housing market, more well-off home buyers were able to have their bids accepted by offering larger down payments and even by paying cash,” said Lautz.
The annual survey of recent home buyers and sellers, which this year tracks transactions between July 2022 and June 2023, has been conducted since 1981.
Despite the incredible odds — few homes coming to market, prices that didn’t let up, scorching mortgage rates — there were first-time buyers in the market this year.
(Excerpt) Read more at channel3000.com ...
“’Homebuyers in the past year were more diverse, both racially and ethnically, with increases noted among minority buyers, buyers who were born outside of the US and buyers whose primary language is not English,’ said Lautz.
The shift is an encouraging move toward closing the homeownership gaps that exist between white homeowners and other groups.”
Thank Goodness! ‘Evil Whitey’ is being pushed out of the home buying market! *SMIRK*
It always comes down to race and equity, doesn’t it?
Foreigners, especially from China and India are buying homes, which is squeezing out Americans.
it’s the same as it’s ever been. The first home I purchased was at like 10% or 11% interest...the next home I bought was at at like 8%. The next one at like 4%. The one I’m having built now is going to be 7%. I’ve never lost money on a home and there’s always someone who will buy it if you just keep it up.
I read about how hard it is to buy a home these days. Yeah Right.
Let me tell you how hard it was in 1982 when I bought a home and mortgage rates were 18%.
Pretty soon whites will be a minority.
I lived 50 plus years in San Antonio.
I was always a minority.
“Buying” a home
“Purchasing” a home
-not equal to “owning” property
You obviously suck at Math. Run the numbers for total costs of living vs income.
What was your 1982 income?
What did the house cost?
Truck in 1982 v 2023?
What is your house worth now?
I find it interesting they always show how much you supposedly have to make.
No one mentions how long you should plan on saving, living a modest life, not spending beyond your means, etc.
I never had an income close to what these articles post, but own 3 homes outright, not rentals, but homes I travel to and live in.
I worked hard, smart, and long. It was a good strategy.
The inflation rate in 1982 was 6.16%. My FHA mortgage was only 13.5%
The inflation rate today is 3.70%. Mortgage rates are 4.00%
My math doesn’t suck. It was harder to buy a home then than it is today.
If you believe inflation is 3.7%, you have far bigger problems than your math.
American real wages peaked in 1971 and have been falling ever since.
Technology can alleviate some of the problems.
For instance robots can now sew clothes.
3D printed homes are 2/3 the price of wood framed homes; only a few people are needed to build one.
Sources say 3.7%.
You throw out a number - with a link to any source at all - and I'll reconsider.
Your math doesn’t suck. I wish people on this site didn’t insult others as they do sometimes.
Anyway, another factor to consider, is how much did the house cost years ago, versus how much was someone’s income needed to pay the mortgage back then. There has been so much inflation in the general economy, and inflation in housing costs in particular, that it can be hard to compare situations now vs. Then.
Exactly! When we bought this 50-acre farm with a small four-bedroom farmhouse in 1989, we paid $72,000, CASH. I’d hate to try to buy anything now.
I’m happy to say that I paid off my mortgage about 25 years ago or I’d probably be homeless in today’s market. My house is solely owned by no one except me and the tax assessor.
“...forecast of a Fed Funds rate cut from 5.50% today to 2.375% in 2024”
If true then better to wait to buy.
It is SUCH a good feeling! We have about $20K to go on the crop land; that will be paid in full by 2025, if not sooner.
The house and 48 acres are fully paid off. The 112 in production pay the $4K in taxes and then some on the whole farm.
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