Here’s how bad housing affordability is now

by | Jun 25, 2024 | Business

Homes in Rocklin, California, on Tuesday, Dec. 6, 2022.David Paul Morris | Bloomberg | Getty ImagesHome prices set another record high in April, even as mortgage rates rose and the supply of homes for sale increased. Usually, under those circumstances, prices would weaken, but today’s housing market is unlike any other in recent history.Prices in April rose 6.3% compared with April 2023, according to the S&P CoreLogic Case-Shiller National Home Price Index. It marks the second straight month that the national index jumped at least 1% over its previous all-time high.Although this is a three-month moving average, it’s important to note that those price gains come even as the average rate on the 30-year fixed mortgage jumped sharply in April, from 6.9% to 7.5%, according to Mortgage News Daily.”2024 is closely tracking the strong start observed last year, where March and April posted the largest rise seen prior to a slowdown in the summer and fall,” said Brian Luke, head of commodities, real and digital assets at S&P Dow Jones Indices, in a news release. “Heading into summer, the market is at an all-time high, once again testing its resilience against the historically more active time of the year.”The only potential sign of relief is that the annual and monthly gains on the price index are slowing a little bit. March’s annual gain was 6.5%.Still, it feeds into what is now one of the least affordable housing markets in U.S. history for both homeownership and renting. The housing cost burden has hit a record high, according to a new report from Harvard’s Joint Center for Housing Studies.Home prices are now 47% higher than they were in early 2020, with the median sale price now five times the median household income, according to the study.For renters, …

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[mwai_chat context=”Let’s have a discussion about this article:nnHomes in Rocklin, California, on Tuesday, Dec. 6, 2022.David Paul Morris | Bloomberg | Getty ImagesHome prices set another record high in April, even as mortgage rates rose and the supply of homes for sale increased. Usually, under those circumstances, prices would weaken, but today’s housing market is unlike any other in recent history.Prices in April rose 6.3% compared with April 2023, according to the S&P CoreLogic Case-Shiller National Home Price Index. It marks the second straight month that the national index jumped at least 1% over its previous all-time high.Although this is a three-month moving average, it’s important to note that those price gains come even as the average rate on the 30-year fixed mortgage jumped sharply in April, from 6.9% to 7.5%, according to Mortgage News Daily.”2024 is closely tracking the strong start observed last year, where March and April posted the largest rise seen prior to a slowdown in the summer and fall,” said Brian Luke, head of commodities, real and digital assets at S&P Dow Jones Indices, in a news release. “Heading into summer, the market is at an all-time high, once again testing its resilience against the historically more active time of the year.”The only potential sign of relief is that the annual and monthly gains on the price index are slowing a little bit. March’s annual gain was 6.5%.Still, it feeds into what is now one of the least affordable housing markets in U.S. history for both homeownership and renting. The housing cost burden has hit a record high, according to a new report from Harvard’s Joint Center for Housing Studies.Home prices are now 47% higher than they were in early 2020, with the median sale price now five times the median household income, according to the study.For renters, …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
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