Homes Taking Longer to Sell as Inventory Spike: Report
The median time homes sat on the market hit 58 days nationally, which happened amid active inventory jumping nearly 25 percent year-over-year, the 89th consecutive week of annual gains.
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a day ago
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Homes Are So Expensive In These Cities, You'd Need An 80% Down Payment Just To Afford The Mortgage
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. The severity of America's housing affordability crisis has reached a frightening extreme, according to most recent affordability benchmark report. The report, which was released in June, shows that buyers in the most expensive housing markets in the U.S. would need to put up to 80% down to get an affordable mortgage payment. Economists consider an "affordable" mortgage in the U.S. as one where the borrower earns a monthly salary that is roughly triple the monthly payment. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership This formula is often referred to as the "30% rule." Most lenders use it as a baseline threshold for mortgage affordability because borrowers are much more likely to be delinquent or default on their mortgage when the total payment exceeds 30% of their income. Don't Miss: The same firms that backed Uber, Venmo and eBay are investing in this pre-IPO company disrupting a $1.8T market — 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. For much of the 20th century, buyers could qualify for mortgages under the 30% rule by making a down payment ranging from 3% to 20%. Unfortunately, high home prices and interest rates have combined to turn that paradigm on its head in many U.S. markets. based its findings on data from its May housing market report. It showed that buyers who put 20% down on a mortgage with a 6.82% interest rate – the median U.S. interest rate when the report data was compiled – would spend 44.2% of their income on the mortgage. That alone would stretch most buyers beyond their limit, and banks would be hesitant to approve a loan based on those parameters. Perhaps the most sobering aspect of those calculations is that they're based on a borrower buying a median-priced U.S. home, which was about $440,000 at the time of the study. The picture is exponentially more difficult in more expensive U.S. markets, especially their major population centers. According to the study, the most unforgiving markets are: Los Angeles San Francisco San Diego San Jose New York Boston Trending: Accredited Investors: Grab Pre-IPO Shares of the AI Company Powering Hasbro, Sephora & MGM— Although median incomes in all these cities exceed the national average, it's still not enough for most residents to qualify for mortgages under the 30% rule. For example, the study showed Los Angeles has a median income of $91,000, which exceeds the national average of $79,000. However, shows the median home price in Los Angeles is nearly $1.2 million. The estimated monthly payment with 20% down would be $7,958, or 104% of the average monthly income. According to an average Los Angeles buyer would need to put down 90%-95% to get an affordable mortgage. Buying in San Diego and San Jose would require down payments of 77% and 72%, respectively. 'Though San Jose boasts the highest median income among the 50 largest U.S. metros, the typical household will still face challenges in the housing market, as San Jose also has the highest median listing price,' said Chief Economist Danielle Hale. New York and Boston buyers would need to pay roughly 80% down to qualify for a mortgage under the 30% rule. 'High-priced Northeast markets face high demand and low construction, which has resulted in a growing home supply gap,' said Hale. 'To remedy this challenge, and provide hope for prospective buyers in the country's most expensive markets, supply needs to increase to better match demand.'Therein lies the problem. It's a classic case of figuring out which comes first between the chicken and the egg. These cities need new affordable inventory, but land and financing prices are already prohibitively high. Plus, those cities have expanded so aggressively into suburbs and exurbs that there is precious little space remaining in their metropolitan areas for new construction. That leaves developers in a place where the only profitable lane is the luxury sector. It's also leaving multiple generations of buyers locked out of home ownership in America's biggest cities. Buyers looking to purchase a home under the 30% rule may want to consider the Midwest. According to Pittsburgh, Detroit, and St. Louis are the only U.S. metropolitan areas where buyers can pay a mortgage with 30% of their income. Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's , starting today. Image: Shutterstock This article Homes Are So Expensive In These Cities, You'd Need An 80% Down Payment Just To Afford The Mortgage originally appeared on
Yahoo
3 days ago
- Yahoo
Naples area, Florida home price tags are dropping. Here's how much
The median home in Collier County listed for $737,000 in June, down 1.6% from the previous month's $749,000, an analysis of data from shows. Compared to June 2024, the median home list price decreased 6.1% from $789,000. The statistics in this article only pertain to houses listed for sale in Collier County, not houses that were sold. Information on your local housing market, along with other useful community data, is available at Collier County's median home was 1,800 square feet, listed at $417 per square foot. The price per square foot of homes for sale is down 5.9% from June 2024. Listings in Collier County moved slowly, at a median 104 days listed compared to the June national median of 53 days on the market. In the previous month, homes had a median of 95 days on the market. Around 876 homes were newly listed on the market in June, a 2.7% decrease from 900 new listings in June 2024. The median home prices issued by may exclude many, or even most, of a market's homes. The price and volume represent only single-family homes, condominiums or townhomes. They include existing homes, but exclude most new construction as well as pending and contingent sales. In Florida, median home prices were $439,000, a slight decrease from May. The median Florida home listed for sale had 1,632 square feet, with a price of $265 per square foot. Throughout the United States, the median home price was $440,950, a slight increase from the month prior. The median American home for sale was listed at 1,852 square feet, with a price of $233 per square foot. The median home list price used in this report represents the midway point of all the houses or units listed over the given period of time. Experts say the median offers a more accurate view of what's happening in a market than the average list price, which would mean taking the sum of all listing prices then dividing by the number of homes sold. The average can be skewed by one particularly low or high price. The USA TODAY Network is publishing localized versions of this story on its news sites across the country, generated with data from Please leave any feedback or corrections for this story here. This story was written by Ozge Terzioglu. Our News Automation and AI team would like to hear from you. Take this survey and share your thoughts with us. This article originally appeared on Naples Daily News: Naples, Collier, FL home sellers asking for less. See median price Solve the daily Crossword
Yahoo
4 days ago
- Yahoo
Million-Dollar Homes Are Now the Norm in Boston—Here's What That Means for Buyers
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Boston home sales are heating up, according to despite a housing downturn in most of the country this summer. High prices are getting higher in Beantown, about to break the $1 million level for a single-family home, while sales are pacing at three times the national average. Let's look at the data driving this positive phenomenon and see if other cities can learn from New England's city by the bay. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership Single-family homes flew off the shelves in May, rising 6.4% year-over-year. Greater Boston tallied 1,075 sales during the month, compared to 1,010 in April. The average home sold for $980,000 in the city and surrounding communities, 3.2% more than in April, and setting a new monthly record. Price growth since May 2019 is off the charts, surging more than 50% above that month's lofty $635,000. Don't Miss: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's , starting today. $100k+ in investable assets? – no cost, no obligation. Rising inventories have preceded falling sales in many but not in Boston. The number of single-family homes for sale surged more than 27% in May, year-over-year, while new listings declined by 1%, falling from 1,784 to 1,766 homes. It took 16 days to find a buyer, compared to 15 days last year. That sounds negative at first glance but the national average has now risen to 51 days, so Boston's is selling homes about three times faster. 'The combination of increased inventory and sustained sold-to listing price ratio gives both buyers and sellers different reasons to celebrate the same market. At the same time, median sales prices continue to reach all-time highs,' Greater Boston Association of REALTORS President Mark Triglione told Intense demand, inventory shortages and record high prices have plagued the Northeast in recent years, forcing Boston homebuyers to search markets away from the prohibitively expensive core. Suburban communities well outside the metro area are benefiting from this migration. As Realtor's Senior Research Analyst Hannah Jones sums up, 'House hunters in search of greater value have looked beyond the urban core, fueling activity across the broader region.' Trending: It's no wonder Jeff Bezos holds over $250 million in art — Springfield, Massachusetts, Manchester, New Hampshire and Amherst, Massachusetts sit atop the hottest sales markets as we head through the summer months. And rather than just 2025 sales, these bedroom communities have attracted intense buying interest for several years now, signaling a sustained trend that shows no signs of letting up, despite the national downturn. Even so, affordability issues continue to plague large segments of Boston's homebuying population. Mortgages have stubbornly held to the 6% range after a decade of lower rates. It's a case of haves and have-nots, like the national crisis, with lower-income buyers squeezed out by more affluent customers who bid up prices to get what they want. It's especially painful because the average monthly rent for a one-bedroom studio in Boston has rocketed to $2,375. Boston remains one of the nation's least affordable big cities, ranking fifth behind Los Angeles, San Diego, San Jose, California and New York. But it's also the second-wealthiest city in the U.S. Given this financial equilibrium, it's hard to see current sales and price growth slowing down any time soon. Read Next: In terms of getting money back, . Over the last five years, the price of gold has increased by approximately 83% — Investors like Bill O'Reilly and Rudy Giuliani are u. Image: Shutterstock This article Million-Dollar Homes Are Now the Norm in Boston—Here's What That Means for Buyers originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
