Prospective buyers received a bit of good news, as NerdWallet [1]reported more homes became affordable in Q3 2022 for first-time buyers.
Overall, home affordability improved in 25 metros across the U.S., with metros in Rust Belt being the most affordable.
Pittsburgh saw homes listed at 2.9 times first-time buyer incomes as the most affordable metro studied. It was followed by Cleveland (3.3); Buffalo, New York (3.5); St. Louis (3.6); and Detroit (3.8).
The West Coast continues to be the nation's most unaffordable market, with Los Angeles having homes listed at 11 times first-time buyer incomes. San Diego (9.2); Miami (8.8); San Jose (8.6); and San Francisco (7.6) joined the list.
Cleveland had the nation’s lowest list price of Q3 at $223,2229, as San Jose reported the highest at $1.39 million.
NerdWallet also reported that the number of homes for sales rose 50% from last quarter across the nation. Also, not one city across the 50 metros studied saw a decline in listings from quarter-to-quarter.
Five metros saw active listings rise by 100% or more–Salt Lake City (+100%); Nashville, Tennessee (+107%); Austin, Texas (+115%); Phoenix (+115%); and Raleigh, North Carolina (+120%).
Mortgage rates continue to be a sore spot for buyers. NerdWallet added that a $350,000, 30-year mortgage at 5% interest--where rates were in April--results in a $2,500 monthly payment. However, a rate of 7%--in the range of current rates–causes that payment to grow to $3,000.
Freddie Mac [2] reported the third-consecutive decline for mortgage rates on December 1. The average 30-year fixed-rate mortgage came in at 6.49%--down from the prior week’s rate of 6.58%. Last year at this time, the 30-year fixed-rate mortgage stood at more than half that total at 3.11%.