Homebuyers Squeezed as Prices Soar and Mortgages Double

Home prices and mortgage rates have risen significantly, making homes much less affordable compared to 2020. A buyer's dollar goes about half as far now.

The median home price is over $416,000 currently, up from $360,000 in late 2020. Monthly mortgage payments have roughly doubled.

Buyers now need to earn over $100,000 to afford a median priced home with a 20% down payment. This is up from around $75,000 in median household income.

The NAR's housing affordability index has plunged from 170 pre-pandemic to 91.7 now, indicating homes are very unaffordable.

Tight supply, from less construction after the housing bust and owners not selling, along with high demand have driven up prices. But builder stock prices are up, signaling potential new construction.