About three-fourths of buyers estimate they could afford less than half the homes available for sale in their markets, according to a survey from the National Association of Home Builders, reflecting third-quarter data. That is up from 63% in the final quarter of 2020.
Home buyers’ perceptions of housing affordability have deteriorated over the last three consecutive quarters. Affordability expectations are worst in the Northeast and the South.
Home prices have posted double-digit gains over the past year. The National Association of REALTORS® reports that existing-home sales prices are up 13.3% as of September compared to a year ago. That does mark a much slower pace in appreciation compared to the more than 20% annual gains seen earlier in the year. The median existing-home price for all housing types was $352,800 in September.The housing market remains competitive. Forty-one percent of REALTORS® report that their buyers bid above the list price in September, according to the most recent REALTORS® Confidence Index Survey.