Middle-class families can only afford homes worth half as much as they could three years ago, new data shows.
The median purchasing power for families has plummeted to $356,273 as of August, down from $689,091 in summer 2020.
This is despite it rocketing to a high of $737,392 in December 2020, figures from government-backed lender Fannie Mae reveal.
It comes despite a recent report of a widespread housing shortage across the country.
However, as purchasing power has gone down, list prices have only increased, with a new high this past August of $446,924.
The numbers, according to NBC News, show a nightmare for Americans attempting to invest in real estate.
‘If you don’t make six figures, it’s going to be really tough’ said Lawrence Yun, chief economist for the National Association of Realtors.
Perhaps because of the need for real estate, four million homes are still being sold every month, despite the rising mortgage rates.
The solution for buyers is borrowing a lot more money than they did even just a few years ago to purchase a home.
In spite of these challenges, people are still buying homes. About 4 million are sold every month. But to a shocking extent, rising mortgage rates and the shortage of homes for sale — which feeds rising prices and bidding wars — has weakened their financial position.
Because they overextended themselves? Poor babies. When my husband and I were buying a home decades ago we were told by our bankers and lenders and employer and church how much we could afford to spend on a new house. TOTAL BS. If we had done so we would be in trouble now too. But we weren’t falling for it. Thank God. You DON’T NEED TO KEEP UP WITH YOUR FRIENDS, FAMILY, NEIGHBORS. YOU SHOULD BUY LESS THAN YOU CAN. DON’T BECOME A DEBT SLAVE. AND STOP BLAMING OTHERS FOR THIS IF YOU HAVE DONE SO. YOU ARE FREE, UNTIL YOU CHOOSE NOT TO BE.
Church??? LOL! Did they suggest a trailer, so you could give the rest to them?
be patient, things will get worse
ALL ON BIDEN !!!! Since Day One in Stolen Office !!!!!
Things were different years ago 11:52
Campgrounds will now fill up !!!! Living in campers !!!
You try starting all over again from scratch 11:52. The house you “and your husband” bought decades ago cost less than a car now. Without a “useful” college degree or Union they will forever be in poverty.
Remember TRUMP & the Good Days Before 2020 !!!!! Never should have let Biden STEAL OFFICE 2020 !!!!