Housing prices are finally coming down from their summer highs, but the average American still cannot afford them.
The national median existing-home sale price fell from $405,815 in August to $403,797 in September, according to data from Redfin.
But across the country, the average household income is $87,864, and income levels haven’t kept up with home prices. Couple that with high mortgage interest rates not seen since 2007, and many aspiring buyers are still steering clear of the housing market.
With bidding wars between homebuyers subsiding as a result, some would-be sellers are waiting for prices to reach the same peaks they did in June before listing, while others, a record 22%, lowered their asking prices.
Housing experts like Devyn Bachman, senior vice president of research at John Burns Real Estate Consulting, predict there will be nationwide price corrections “likely in the double-digit range” whether the country enters a recession or not.
Real estate agents who rely solely on sales commission may want to consider diversifying into property management for extra business assurance, as the growing single-family rental market can provide a sustainable source of recurring revenue.
More homebuyer headlines
Where are home prices dropping the fastest? – Bankrate
Here’s who’ll drive the next home-buying boom in Dallas-Fort Worth – The Dallas Morning News
When mortgage rates might stop rising, and more takeaways from a top housing economist – Barron’s