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Nine Million Americans Priced Out Of Housing Market As Affordability Crisis Worsens

Tuesday, April 26, 2022 By Stillness in the Storm Leave a Comment

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(Activist Post) The National Association of Realtors (NAR) estimates millions of Americans have been priced out of the housing market since January as sky-rocketing mortgage rates spark an affordability crisis.

Related Can Tabletop Hydroponics Keep You Fed?

Source – Activist Post

by Staff Writer, April 11th, 2022

Nadia Evangelou, a senior economist and head of forecasting at NAR, said 9 million homebuyers had been priced out of the market. Out of that total, about 3 million millennials.

The blame resides primarily on soaring mortgage costs as the 30-year fixed-rate average jumped from about 3% at the start of the year to a shocking 5.25% this morning – the highest since 2009…

Source: mortgagenewsdaily.com

Evangelou warned affordability has plunged through the virus pandemic as housing prices increased faster than incomes. Now mortgage costs are climbing as home prices remain at all-time-highs, pricing people out of the market.

As discussed in March, “Housing Affordability Is About To Crash The Most On Record“ and “Biggest Housing Affordability Shock In History Incoming,” the affordability crisis is already cooling the red-hot housing market. 

NAR points out that the monthly cost of paying off the median mortgage in California has jumped more than $500 since the start of the year. Wage increases minus inflation is negative and are another reason for the affordability crisis.

Actuarial accountant Rachel Linehan told Bussiness Insider that soaring rates slashed their homebuying budget by $100K and has forced them to look at houses in undesirable areas.

“It’s pretty demoralizing. We went in feeling pretty hopeful but that hope has diminished over time to the point where we are feeling pretty small.

“We’re getting to the point where we might give up soon,” Linehan said.

Evangelou points out that housing affordability is some of the worst on record. Similarly, BofA economist Alex Lin recently showed clients the plunge in affordability is at a record pace.

NAR suggests the affordability crisis is likely to worsen. Last week, we outlined that housing market cracks have begun to appear as sellers drop their listing prices.

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The news is important to all people because it is where we come to know new things about the world, which leads to the development of more life goals that lead to life wisdom. The news also serves as a social connection tool, as we tend to relate to those who know about and believe the things we do. With the power of an open truth-seeking mind in hand, the individual can grow wise and the collective can prosper.

– Justin

Not sure how to make sense of this? Want to learn how to discern like a pro? Read this essential guide to discernment, analysis of claims, and understanding the truth in a world of deception: 4 Key Steps of Discernment – Advanced Truth-Seeking Tools.


Stillness in the Storm Editor’s note: Did you find a spelling error or grammatical mistake? Send an email to [email protected], with the error and suggested correction, along with the headline and url. Do you think this article needs an update? Or do you just have some feedback? Send us an email at [email protected]. Thank you for reading.

Source:

https://www.activistpost.com/2022/04/nine-million-americans-priced-out-of-housing-market-as-affordability-crisis-worsens.html

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Filed Under: Economy, News Tagged With: activist post, crisis, economy, news

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