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As a Premium user you get access to the detailed source references and background information about this statistic. To use individual functions (e.g., mark statistics as favourites, set statistic alerts) please log in with your personal account. 56% of renters and 24% of homeowners spend more than 30% of their monthly income on housing. According to the Mortgage Bankers Association, mortgage purchase applications decreased by 16 percent compared to the same week last year.
Worcester, which contains UMass Memorial Health Care and Medical School, sees almost a quarter of its population in education and healthcare jobs. Similarly, 19.2% and 17.6% of employment in Hartford, CT and Buffalo, NY is in healthcare and education jobs, respectively. While the top market list in general falls in line with the top 100 markets in proportion of trade/transportation jobs (19.0%), Louisville, KY surpasses the average with 22.7% of its workforce employed in this sector. The midwestern metros of Grand Rapids and Toledo lead the list in proportion of manufacturing jobs with 20.0% and 15.6% of total employment, respectively. Only El Paso bucks this trend with 5.3% of its workforce in manufacturing, lagging the average for the top 100 metros (7.5%). Instead, El Paso leads the list in proportion of government employment with 21.4% of its workforce.
Current Home Price Trends & Forecast Until August 2023
This figure has declined by 5 percentage points over August as the number of respondents who think it is a bad time to buy increased by 3 percentage points and those who think it’s a good time to buy decreased by 3 percentage points. The share of survey respondents saying it is a bad time to buy continued to outnumber those saying it is a good time by five-to-one, with a net bad time to buy of 64%, 29 percentage points more than last year. This figure has declined by 8 percentage points over August as the number of respondents who think it is a bad time to buy increased by 5 percentage points and those who think it’s a good time to buy decreased by 3 percentage points. However, mortgage rates are a major factor in the calculus of housing affordability, and lower than expected rates are a positive risk factor.
Recent revisions by economists at Realtor.com have increased their 2022 median sales price appreciation projection for existing properties to 6.6 percent from 2.9 percent. Sales will be down not only from 2021’s elevated level, but also may be the lowest in a decade as still high home prices and mortgage rates keep the cost of purchasing high. For households pursuing a home purchase in 2023, affordability will outweigh many other search criteria and is expected to continue to propel shoppers to look elsewhere to find it. Already in 2021, cross-market demand, the phrase we use to describe someone who is shopping for a home somewhere other than where they are currently, accounted for a majority of U.S. metro-based page views.
Price on demand
Despite popular belief that now is not a good time to buy, many home buyers are looking to lock in their monthly housing payments. There is now an excessive demand for houses in several property markets, and there simply aren't enough homes to sell to prospective purchasers. Home construction has increased in recent years, although they are still far behind. Thus, big drops in housing prices would necessitate considerable drops in buyer demand. The total inventory of unsold homes, including pending listings, increased by just 1.3% year-over-year due to a decline in pending inventory (-21.9%). In the 50 largest U.S. metros, the typical home spent 43 days on the market, a full week more than last September, with the slowdown matching the national rate.
The index had a reading of 108.3 in August 2022, which is around one-seventh of what it had been in 2006. Because there aren't as many options on the housing market, a lot of people in the United States are having a hard time finding the house of their dreams. The higher the index is, the more options there are for obtaining mortgage finance. As the housing market heated up, mortgage loans became more available, and then in 2006, the index surpassed 850.
Tips for Buying in a Hot Housing Market
This is less than half the average historical rate of 2.5%, therefore the 1.3% GDP growth will be a significant slowdown. As the Fed lowers the pace of rate hikes in an effort to contain inflation, the 30-year fixed mortgage rate will fall to 5.7% in late 2022 from its peak of over 7% at the time. In the 50 largest U.S. metros, the typical home spent 37 days on the market, five days more than last August. Time on market increased similarly across regions, with larger metros in the West seeing the greatest increase (+7 days), followed by the South and Midwest (+4 days) and the Northeast (+3 days). The markets which saw the highest year-over-year growth in newly listed homes included Nashville (+25.5%), Raleigh (+14.4%) and Las Vegas (+13.1%). Markets which are seeing large declines in newly listed homes compared to last year include San Jose (-29.3%), Baltimore (-28.3%), and Washington, DC (-27.0%).
The 0.7% month-over-month price fall also reflects a decrease in homebuyer enthusiasm, with roughly three-quarters of states reporting declines since July. The states with the highest increases year over year were Florida (26.4%), Tennessee (20%), and North Carolina (19.9%). These large cities continued to experience price increases in August, with Miami on top at 27.1% followed by Phoenix at 17.8%, andLas Vegas also at 17.8% year over year. This long-term outlook is slightly lower than last month’s call for a 1.2% annual increase. Fannie Mae's Economic & Strategic Research Group provides analysis of current and historical data for the economy, housing and mortgage markets, and forecasts trends to help decision-makers anticipate opportunities and developments.
Low-tax Colorado, North and South Carolina and Florida will also likely see continued strength in their luxury housing markets, with prices and sales rising, according to the report. "These locales will attract demand from higher cost areas as luxury buyers reallocate investments during and post tax season," the report said. As higher interest rates and ongoing elevated construction costs continue to price out a large number of prospective buyers, the single-family homebuilding industry will experience a sharp decline in 2023.
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These offers do not represent all available deposit, investment, loan or credit products. Rents will fall, and many Gen Zers and young millennials will continue renting indefinitely. Of the nine census divisions, the South Atlantic division recorded the strongest four-quarter appreciation, posting a 17.0 percent gain between the third quarters of 2021 and 2022. Since rental rates are still higher than they were before the outbreak, compromise and adaptability will be required well into next year.
Selling sentiment declined and listing activity followed, with newly listed homes declining by 13.4% on a year-over-year basis. The net share of respondents saying now is a good time to sell increased by 2 percentage points compared to the previous month but decreased by 29 percentage points compared to last year. The median list price grew by 11.0% in November and is decelerating from higher growth rates in recent months. While the outright share of cash-buying is slightly lower in the top markets, it has been growing faster, on average, than in the top 100 markets.
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