Now is Most Expensive Time to Buy a Home Since 2006, Say Realtors
Saturday, July 09, 2022
Data released Friday by the National Association of Realtors says that due to record home prices and higher mortgage rates in May, it made it the most expensive month since 2006 to buy a home. Interest rates have continued to climb since May.
The National Association of Realtors’ housing-affordability index fell to 102.5 in May — the lowest level since the index fell to 100.5 in July 2006.
The new data was close to the lowest level since July 1990, when the index hit 100.2. That was a time when interest rates were in the double digits.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTIn Rhode Island, the median price of a single-family home is at a record level — $420,000.
On a national basis, home buying was relatively affordable in 2020 and last year, thanks to record-low mortgage rates even as strong demand sent home prices skyrocketing. But this year, mortgage rates have moved up sharply and house prices have climbed to new highs nationwide.
“The Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data,” say the Realtors.
RI a Bargain?
As GoLocal reported earlier this week, the prices of Massachusetts home are so high, that Commonwealth residents will continue to look to RI for bargains.
According to the Massachusetts Association of Realtors (MAR), housing prices in the Commonwealth continue to spike and make Rhode Island prices look discounted.
The median price for a single-family home in Rhode Island is a blistering $419,000, but that is a Filene's Basement bargain discount compared to Massachusetts prices.
In Massachusetts, the median price for single-family homes increased by 12.3% to $617,750 and the median price for condominiums rose by 5.1% to $531,501, when compared to the same time period last year.
The median price in Massachusetts is 47% higher than in Rhode Island.
“The biggest issue we are facing in this market is a shortage of houses,” said Dawn Ruffini, 2022 President of MAR. “Until we are able to increase supply, more households are going to continue to be priced out of the market. We need to act now to expand housing access as it will, in turn, reduce home prices and allow more people to enter the market.”
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