Latest news with #NAR
Forbes
5 hours ago
- Business
- Forbes
Prices Are Down, But Buying A Home Is Still Out of Reach
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Yes, home prices are rising more slowly. No, that doesn't mean homes are any easier to afford. According to the S&P CoreLogic Case-Shiller Index, U.S. home prices rose 2.3% year-over-year, down from April's 2.7% gain. Month-over-month, prices ticked up just 0.4% before seasonal adjustment. But even with that 'cooling,' the National Association of Realtors (NAR) says the median existing-home price hit a record high of $435,300 in June. Existing home sales fell 2.7% month-over-month, despite a modest bump in inventory. Experts say these challenges are likely to persist through the year . Still, those willing to be flexible on location may find more budget-friendly options, especially in areas where local conditions now carry more weight than national housing trends. In other words: homes still cost more, buyers are fewer and the rising price slowdown isn't helping most Americans unless they're willing to relocate to more affordable areas. Here's the hard math: In Florida, the median income for a single earner is $65,801, according to the U.S. Census Bureau. Following the commonly recommended rule of spending no more than three times your annual income on a home, that would suggest buying a home priced around $197,400. But the actual median sales price for a single-family home in Florida was $412,000 in June, according to Florida Realtors—more than six times the median income. Even though that price is down 3.5% from a year earlier, it's still far above what many Floridians can afford without taking on significant debt. In California, a one-earner household brings in about $76,190, which should put their target home price near $228,570. Yet California's actual statewide median price for existing single‑family homes stood at $899,560 in June, according to the California Association of Realtors. That's nearly 12 times the median income—an affordability gap that even seasoned financial advisers would call unsustainable. Financial advisers may still recommend the three-times guideline, but for many Americans in 2025, the numbers no longer add up, even before accounting for interest, taxes and insurance. New York once again led all Case-Shiller cities with a 7.4% year-over-year gain in May. Chicago followed with 6.1%, and Detroit came in at 4.9%. These increases continue the trend of stronger growth in the Midwest and Northeast metro areas. On the other end of the spectrum, Tampa's home prices dropped by 2.4%—the seventh straight month of annual declines for the city. Several Western cities also showed signs of weakening; San Francisco prices slipped by 0.6%. Los Angeles increased just 1.1%, while San Diego and Phoenix posted minimal gains of 0.4% and 0.9%, respectively. Nationally, prices rose 2.3% from a year ago. But nearly all of that growth happened in the last six months. Monthly trends suggest fatigue is setting in. After seasonal adjustment, prices declined 0.3% in May. That was the third month in a row of adjusted price drops. Even in cooling markets, buyers are not seeing much relief. The problem is not just the sale price of a home. It is the mortgage rate, the cost of insurance, the property taxes and the growing gap between wages and what homes actually cost. As of mid-July, the average 30-year fixed mortgage rate sits at 6.74%, according to Freddie Mac. That's only slightly lower than this time last year, but still high enough to choke affordability. If rates were to fall to 6%, NAR's Lawrence Yun estimates 160,000 more renters could become homeowners. But until then, rising home prices and elevated borrowing costs are working in tandem to keep the market locked up. A $400,000 home with a 30-year mortgage at a 7% rate with a 20% down payment equals a monthly mortgage payment of nearly $2,130, excluding taxes and insurance. That payment alone can eat up 40% or more of a median earner's take-home pay in states like Arizona, Nevada or North Carolina. Borrowers who comparison shop often get better deals than those who don't. Lenders reserve the best rates for those with a credit score above 740. According to Experian, those with a 780 or higher get the best rates. Even a 20-point bump can cut your payment significantly. Sellers in slower markets may offer credits, rate buydowns or pay closing costs just to get deals done. FHA, VA and local agencies (like CalHFA or MassHousing) offer lower down payments, better rates, down payment assistance programs and even grants for qualified buyers. If you're open to relocating, aim for places where paychecks and home prices actually make sense. Prices aren't crashing—but they're not accelerating, either. This is a market of sharp elbows and thin margins. Here's where preparation beats timing, and compromise is king. If you're waiting for a big drop, you might miss your window. But if you're strategic about your budget, your lender, and your location, you can still get in the door. Just maybe not your dream door. Yet.
CNBC
6 hours ago
- Business
- CNBC
The U.S. median home price hit a record high—here's what it would cost you per month
Even with home sales at a historic low, prices continue to rise — adding hundreds of dollars to monthly payments so far in 2025. In June, the median price for an existing home in the U.S. reached a record high of $435,300, according to the National Association of Realtors. That's up 2% from a year ago and marks the 24th straight month of annual price growth. While more homes are being built, "multiple years of undersupply are driving the record high home price," says Lawrence Yun, NAR's chief economist, in a blog post about the data. "Home construction continues to lag population growth." Rising prices, combined with mortgage rates above 6.5%, have pushed many buyers out of the market, says Yun. Homeowners are also reluctant to sell, since just over half of them have mortgage rates under 4%, per NAR. As a result, home sales in the last two years have fallen to their lowest sustained levels since the early 2010s. Even so, limited inventory and continued demand from more affluent buyers — many of whom can pay in cash — have kept prices climbing. If you buy a median-priced home with a 20% down payment and a 30-year fixed-rate mortgage at 6.81% — the average rate, per Mortgage News Daily — your monthly mortgage payment alone will be about $2,273. That's $139 more than in January, when the median home price was $396,900 and average rates were slightly higher, averaging around 7.1%. Back then, the monthly mortgage payment would have been about $2,134. Of course, not everyone pays the median home price or qualifies for the same rate, so it helps to run the numbers with a tool like the CNBC Make It mortgage calculator. It's also important to consider the cost of property taxes and homeowners insurance, which vary widely by location. These can be around 1% of the total mortgage cost per year, which can add hundreds of dollars to monthly payments for a median-price home. Unfortunately for buyers, mortgage rates aren't expected to fall much in 2025 — and with limited supply keeping prices elevated, high monthly costs may be the norm for a while.
Yahoo
a day ago
- Business
- Yahoo
Housing market ‘purgatory' for existing home sales as activity falls to lowest level in 9 months
U.S. existing home sales fell sharply in June 2025, dropping to their lowest level in nine months as elevated mortgage rates and record-high prices continued to sideline many prospective buyers. According to the National Association of Realtors (NAR), existing home sales slipped 2.7% from May to a seasonally adjusted annual rate of 3.93 million transactions, exceeding analysts' expectations for a more modest decline. Compared with last year, sales were flat overall, with concentrated declines in several regions. The housing market is traditionally busiest in spring, but this year's key buying season proved lackluster. The month-over-month decline largely reflected affordability challenges: Mortgage rates hovered close to 7% throughout April and May, when most June closings would have entered contract. 'Existing home sales have been in purgatory since mortgage rates spiked in 2022,' Lance Lambert, editor-in-chief of ResiClub, told Fortune Intelligence. 'Some of that's because strained affordability in many markets is making it harder for sellers to find a buyer at their asking price—which is also why active inventory is rising. And some of it is because many would-be home sellers, who'd like to sell and buy something else, either can't afford that next payment or don't want to part with their lower mortgage rate and payment. No matter how you look at it, this is an unhealthy housing market.' Sky-high prices On a nationwide basis, home prices climbed to an all-time high, underpinning the market's affordability squeeze. The median price for existing homes reached $435,300 in June, up 2% from the same month a year earlier and marking the 24th consecutive month of yearly price gains. NAR chief economist Lawrence Yun sounded an optimistic tone about this staggering climb: 'The record-high median home price highlights how American homeowners' wealth continues to grow—a benefit of homeownership. The average homeowner's wealth has expanded by $140,900 over the past five years.' Despite weak sales, inventory is slowly rebuilding: 1.53 million homes were listed for sale at the end of June, up nearly 16% from a year ago—the highest level in years—though still 0.6% lower than in May owing to seasonal factors. This puts the market's unsold inventory at a 4.7-month supply, matching pre-pandemic norms and up from 4.0 months a year prior. Regional dynamics varied. Sales dropped in the Northeast, Midwest, and South, but edged higher in the West, with year-over-year changes mirroring these splits. Single-family home sales slipped 3%, while sales of condominiums and co-ops were stable compared with May but down 5.3% against June 2024. One positive for buyers: more supply and slightly longer time on market. reported that active inventory for June rose for the 20th straight month, climbing nearly 29% year over year to 1.08 million homes, and the average home spent 53 days on market, five days longer than a year earlier. However, these gains are offset by persistent undersupply when compared with the pre-pandemic market, and price cuts became more common, with nearly 21% of listings experiencing downward adjustments—the highest June share since 2016. 'Multiple years of undersupply are driving the record-high home price,' Yun said, noting that construction continues to lag population growth and is holding back first-time buyers. 'If the average mortgage rates were to decline to 6%, our scenario analysis suggests an additional 160,000 renters would become first-time homeowners and a boost in activity from existing homeowners,' Yun added. If mortgage rates decrease in the second half of this year, Yun said, he expects home sales to increase across the country owing to strong income growth, healthy inventory, and a record-high number of jobs. For now, though, it's a familiar story of peak prices and affordability as the main obstacles for would-be homebuyers in the U.S. For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. This story was originally featured 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
Daily Mail
2 days ago
- Business
- Daily Mail
Housing market will continue to crumble this year, experts warn
The housing market is set to get even worse this year, experts have warned in the latest dire forecast. New research from Oxford Economics found that the already‑frozen market is barely holding steady — and conditions are expected to deteriorate further. 'The supply of existing homes for sale is approaching pre-pandemic levels as a combination of high prices, elevated mortgage rates, and concerns over the labor market keep buyers sidelined,' Oxford Economics analyst Mathew Martin said. 'The new-home market is also being challenged, with builders continuing to offer incentives including price cuts in an effort to move unsold inventory,' Martin wrote in the report titled 'Recession Monitor – Real test for economy is just beginning.' Thirty‑year mortgage rates will average 6.7 percent across 2025 and end the year at around 6.4 percent. That is slightly higher than previous forecasts. Median home prices have jumped 52 percent since May 2019, far outpacing wage growth of just 30 percent, NAR data shows. That would mark the lowest level since 1995, according to the National Association of Realtors. Buyers have been scared off by a rocky economy, surging HOA fees, and punishing mortgage and insurance rates, leaving sellers slashing prices to lure offers. 'A longstanding lack of inventory has supported both high prices and sluggish sales in the market for existing homes,' analysts Lawrence Werther and Brendan Stuart from Daiwa Capital Markets wrote in a report published earlier this week. 'Substantial improvement is unlikely to materialize in the near term until mortgage rates (and/or prices) ease, thereby mitigating the current affordability challenges faced by potential buyers,' they explained. Lawrence Yun, chief economist for the National Association of Realtors, agreed, arguing that 'multiple years of undersupply are driving the record high home price. Home construction continues to lag population growth.' 'This is holding back first-time home buyers from entering the market.' Despite the frozen market, economists do not predict a correction in home prices but conversely see them rising 2.5 percent through 2025. This is largely driven by sellers who refuse to drop their asking price and are instead pulling their homes off the market in droves. Others have been forced to slash their asking prices and accept a more reasonable offer in the current uncertain market. More than 20 percent of listed homes had price reductions in June, the highest share for the month since 2016. Phoenix, Arizona, is at the epicenter of the delistings trend, seeing more homes pulled from the market than any other area. Economists believe this is because areas in the South and West have seen inventory hit pre-pandemic levels but prices remaining flat or are even falling. Last week, Moody's Chief Economist Mark Zandi issued a 'red flare' warning for the housing market and cautioned that it could drag down the entire economy. 'I sent off a yellow flare on the housing market in a post a couple of weeks ago, but I now think a red flare is more appropriate,' Moody's Chief Economist Mark Zandi wrote on X.
Epoch Times
5 days ago
- Business
- Epoch Times
California Top Destination for Foreign Chinese Purchasing Residential Homes in US: NAR Study
California was the top destination for Chinese nationals looking to purchase homes in the United States this past year, according to a new study by the National Association of Realtors (NAR). Buyers from China became the top foreign investors in the U.S. real estate market, in terms of both volume and dollar value, during the period of April 2024 through March 2025.
