Although uncertainty remains the name of the game, home prices continue to rise. Even through the presidential election, multiple waves of the pandemic, and high unemployment, there seems to be no stopping the housing market. Single-family prices for existing homes increased 12% in the third quarter nationally compared to one year ago, according to Realtor.com. The National Association of Realtors’ senior economist says the number of metro areas seeing double-digit price increases is unprecedented. For 181 metro areas that were analyzed, 65% experienced double digit price gains, not helped by the housing shortage.
The nation is in the clutches of a significant housing shortage at the same time that buyers are clamoring for spacious abodes. Just 1.47 million homes were for sale in the third quarter—about 19.2% lower than last year, according to the report.
"Favorable mortgage rates will continue to bring fresh buyers to the market,” NAR's Chief Economist Lawrence Yun said in a statement. "However, the affordability situation will not improve even with low interest rates because housing prices are increasing much too fast.”
Even with record-low mortgage rates, monthly housing payments rose across the country. They reached a median $1,059 on a typical single-family home, according to the report. Homeowners needed an income of at least $50,819 to afford the monthly payment.