Based on REALTORS® who reported about their transactions in September 2018, home buying activity slowed compared to the level of activity one year ago on a national level.
The comparison indicates that the housing market is less likely to suffer the huge price decline that prevailed from 2005 through 2012.
Eighty-one percent of respondents reported that home prices remained constant or rose in September 2018 compared to levels one year ago (85 percent in September 2017).
Mortgage rates are trending upwards to near the highs of 2011 at 4.98 percent, home prices are still rising but at a slower pace, and the median income has been steadily rising although an even more modest pace than house prices.
Mortgage rates rose to 4.78 percent this August, up 14.1 percent compared to 4.19 percent a year ago.
During the June–August 2018, properties typically sold within one month in 32 states and in the District of Columbia.
Home prices have started dropping, although modestly in some areas.
Lack of supply remains the major obstacle to homebuying and the factor driving up prices and eroding home affordability.
A typical household earning about $51,000 can afford to buy 36% of homes for sales in the United States.
Housing affordability declined from a year ago in July moving the index down 8.2 percent from 151.2 to 138.8.
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