Median-priced single-family homes and condos were less affordable during the third quarter compared to historical averages in 99% of counties with sufficient data to analyze, according to a new report from ATTOM. While that was the same high rate as the second quarter, the nation hit a new record high median home price of $375,000 in the third quarter.
As a result, 44.7% of the 580 counties analyzed by ATTOM (259 markets) had worse affordability index ratings in the third quarter than in the second.
Nationwide, the median value of a home has increased by 58% since the beginning of 2020 while typical wages have risen by 28%. In 79% (460) of the 580 counties in ATTOM’s analysis, homeownership expenses exceeded 28% of a typical resident’s wages, making owning a home unaffordable by standard guidelines. Median home prices rose year-over-year in 75.5% (438) of the 580 counties in ATTOM’s analysis
“The drop in mortgage rates will help some buyers keep pace with the rising cost of homes,” said Rob Barber, CEO of ATTOM. “But the more favorable loan rates could also enable prices to keep rising and further extend this two-and-a-half-year streak we’re in of homes being less affordable to the typical resident Nationwide, the median value of a home has gone up 58% since the beginning of 2020 while typical wages have risen by 28% of an area than they historically have been.”
