Home prices ain’t going down…..
Mortgage interest rates aren’t either…..
The American dream of getting your own home is getting hard to achieve…..
High home prices are straining the budgets of first-time homebuyers as the ongoing housing shortage pushed the cost of starter homes to a record high, according to a report.
The sale price of a typical starter home reached $243,000 in June, up 2.1 percent from a year ago and 45 percent above pre-pandemic levels, the report from real estate brokerage Redfin showed.
A first-time buyer needs to earn $64,500 annually to afford a home at this price point, a 13 percent increase from last year. San Francisco, Austin and Phoenix are the only metros analyzed by Redfin where buyers can earn less than last year and afford a starter home.
But buyers in Miami need 25 percent more income than last year to afford starter homes priced at $300,000.
“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,” Redfin senior economist Sheharyar Bokhari said in a statement, adding that high housing costs and stubbornly high mortgage rates continue to push potential buyers to the sidelines….
Low inventory continues to drive prices and the lack of options moved up the median cost of a home to more than $400,000 for only the third time on record, according to data from the National Association of Realtors (NAR)….