Buying a house is a big deal – but the latest numbers show it’s even a bigger deal this year.
On average, prices are going up across the country, including here in San Antonio.
While mortgage rates remain at record lows, home prices are rising across the country.
The nation’s median existing single-family home price climbed to $313,500 in the third quarter of this fiscal year.
For context, that is up 12% from a year ago.
At that price, a family would need to pay $1,059 for a monthly mortgage payment and would need to earn $50,819 a year to afford it.
The troubling part is that home prices grew four times as fast as median family income, which increased at a rate of 3%.
The median sale prices of existing single-family homes rose from a year ago in all 181 metro areas measured in the national association of realtors report, and 65% saw double-digit price gains.
Prices are rising largely due to the combination of low mortgage rates that are attracting buyers, and a limited supply of available homes to buy.
The National Association of Realtors chief economist says favorable mortgage rates will continue to bring fresh buyers to the market, however, whether the buyer will be able to afford it is a situation that will not improve even with low interest rates because prices are increasing too fast.
Many first-time buyers, attracted by low interest rates, are finding the down payment needed to buy an entry-level home is rising faster than they can save.
Eight of America’s 10 most expensive metro areas are located on the west coast, with the remaining two on the east coast.
According to Zillow, the San Antonio New Braunfels median home value is 221,860.
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