- The US median listing price for a home soared to $392,000 in February.
- That's a double-digit annual pace of 12.9%.
According to Realtor.com, the US median listing price soared to $392,000 in February, marking a new record. During the month, home prices grew at an "unusually-fast" pace, the report said, signaling this year's
"February's new record high for the median listing price places housing affordability front and center for this year's
Home prices grew at a double-digit annual pace of 12.9% in February. As the Spring homebuying season nears, this trend could continue. Rising mortgage rates, inflation and a lack of housing supply are adding pressure. For those earning around or less than US median income, this could mean they are priced out of the market before spring even blooms.
"Over the last five years, we have seen home prices break records early in the season as buyers try to get ahead of the competition," Hale said, adding that this is the first time the record has been broken in February.
US incomes aren't keeping up with home price growth
Home prices have been climbing across the country but household
In 2020, the most recent year on record for US Census data, the median household
"A household earning $75,000 to less than $100,000 can [in 2022] currently afford to buy 51% of the active housing inventory," Hale said in an affordability report. "Nevertheless, that same household could afford to buy 58% of the homes for sale in 2019. Thus, during the pandemic, affordability for households in the income bracket $75,000 to less than $100,000 dropped by 7%."
During the pandemic, the
"At today's 30-year fixed rate, the buyer of a median-priced home is spending over $278 per month more than a year ago on their mortgage payment, which adds more than $3,300 to the yearly financial burden," Hale said. "At the same time, for many families, the alternative to buying a home is not necessarily more affordable, as rents have been rising at a double-digit pace over the past few months."
According to Hale, as inflation takes a larger chunk from everyone's paycheck, households will have to make difficult financial decisions this year — especially in relation to housing.