{"id":1604182,"date":"2022-08-13T06:32:13","date_gmt":"2022-08-13T10:32:13","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1604182"},"modified":"2022-08-13T06:32:18","modified_gmt":"2022-08-13T10:32:18","slug":"median-price-of-american-homes-climbs-above-400000-for-the-first-time","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/median-price-of-american-homes-climbs-above-400000-for-the-first-time\/","title":{"rendered":"Median Price of American Homes Climbs Above $400,000 for the First Time"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmedian-price-of-american-homes-climbs-above-400000-for-the-first-time%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1604182&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The median price for a single-family existing-home has crossed the $400,000 mark for the first time ever, according to the National Association of Realtors (NAR).<\/p>\n<p>Existing single-family homes had a median price of $413,500 nationally in the second quarter of 2022, a 14.2 percent increase from a year ago, according to an Aug. 11 <a href=\"https:\/\/www.nar.realtor\/newsroom\/four-in-five-metro-areas-notched-double-digit-price-gains-in-second-quarter-of-2022\">news release<\/a>. Price appreciation eased slightly, dropping from the previous quarter\u2019s 15.4 percent hike. \u201cOverall, the national price deceleration inevitably followed the softening sales, providing well-positioned prospective buyers a small measure of welcomed relief,\u201d said Lawrence Yun, NAR\u2019s chief economist.<\/p>\n<p>However, home prices have risen at a pace that \u201cfar exceeds\u201d wage gains, especially for low- and middle-income workers, he pointed out.<\/p>\n<p>Home affordability woes rose in the second quarter. A typical starter home, for example, valued at $351,500, with a 10 percent downpayment, required a mortgage payment of $1,810 per month. This is $433 higher than the payment in the first quarter and $597 more when compared with that during the second quarter of 2021.<\/p>\n<p>While during the first quarter first-time buyers spent 28.7 percent of their family income on <a href=\"https:\/\/www.theepochtimes.com\/t-mortgage-payments\">mortgage payments<\/a>, that figure went up in the second quarter, to 36.8 percent. It\u2019s often considered that if the monthly payment exceeds 25 percent of a family\u2019s income, the mortgage is generally considered to be unaffordable.<\/p>\n<p>In almost 53 markets, a family required at least $100,000 to afford a mortgage with a 10 percent down payment, up from 27 markets in the previous quarter. Only 23 markets allowed families with less than $50,000 to afford a home, down from 63 in the first quarter.<\/p>\n<h2>Waning Affordability<\/h2>\n<p>A report from Standard &#038; Poor\u2019s predicted that <a href=\"https:\/\/www.theepochtimes.com\/t-housing-affordability\">housing affordability<\/a> will become worse this year, deteriorating to levels seen during the first quarter of the 2007 financial crisis.<\/p>\n<p>The 25 percent affordability threshold has already been breached for low- and middle-income homebuyers, a trend that will remain through 2025, the credit ratings agency said. This will keep 60 percent of U.S. households out of the market.<\/p>\n<p>By fourth quarter 2022, a first-time buyer with a median income will need 11.3 years to save for a 10 percent downpayment for a home, almost double the time it took before the COVID-19 pandemic, the agency estimated.<\/p>\n<p>On the plus side, some experts believe the housing market is due for a correction. For example, in a note to clients in late July, Ian Shepherdson, a chief economist at Pantheon Macroeconomics, pointed out that listings of single-family homes have risen by 40 percent in the previous four months, although unit sales declined due to high prices and elevated mortgage rates.<\/p>\n<p>Once taking into account current conditions, U.S. home prices are potentially \u201cabout <a href=\"https:\/\/nypost.com\/2022\/07\/26\/us-home-prices-to-plunge-substantially-on-cratering-demand\/\">15 to 20 percent overvalued<\/a>\u201d compared to incomes, Pantheon calculates, according to the New York Post.<\/p>\n<p>\u201cThe market is adjusting to a new reality, with much lower sales volumes and far more inventory. Prices, therefore, have to adjust to the downside, likely quite substantially,\u201d Shepherdson said.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-naveen-athrappully\"><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.\n<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The median price for a single-family existing-home has crossed the $400,000 mark for the first time ever, according to the National Association of Realtors (NAR).Existing single-family homes had a median<\/p>\n","protected":false},"author":1,"featured_media":1433187,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1604182","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1604182","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1604182"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1604182\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1433187"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1604182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1604182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1604182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}