RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

New Report: May Sees Least Affordable Housing Market in 16 Years

Home Agents
By RISMedia Staff
June 6, 2022
Reading Time: 3 mins read
New Report: May Sees Least Affordable Housing Market in 16 Years

While rising home prices and volatile interest rates continue to compound the affordability pressures in the housing market, the same dynamics have also served to increase the housing wealth of American mortgage holders by a significant margin. This is according to the latest Mortgage Monitor Report, release by the data and analytics division of Black Knight, Inc. Monday.

Key findings from the data:

  • Despite seeing a rise of 27,500 from March to April, active listings remain 67% below pre-pandemic levels, with 820,000 fewer listings than would be typical at this point in most homebuying seasons.
  • New listing volumes were up 1% from the same time last year, but remained 11% below pre-pandemic levels for the month of April, suggesting that the number of homes hitting the market remains well below what would be considered “normal” levels.
  • The continued lack of supply continues to weigh on home sales and keep prices higher than they might otherwise be given current affordability metrics.
  • In recent years, a 20.5% payment-to-income ratio has been a rough tipping point at which appreciation begins to soften, but given the severity of inventory shortages, home prices continue to rise—even as that ratio has climbed to 33.7%, just shy of the 34.1% high reached in July 2006.

The takeaway:

According to Black Knight Data & Analytics President Ben Graboske, tappable equity—the amount available for mortgage holders to borrow against while retaining a 20% equity stake in their homes—has reached yet another all-time high.

“Home price growth cooled—albeit very slightly—in April,” said Graboske. “While a downward shift from 20.4% to 19.9% annual growth is hardly cause for concern, it’s also likely we’ve not yet seen the full impact of recent rate increases. Rather, April’s decline is more likely a sign of deceleration caused by the modest rate increases in late 2021 and early 2022 when rates first began ticking upwards. The March and April 2022 rate spikes will take time to show up in repeat sales indexes. That said, price growth thus far has created a very difficult environment for prospective homebuyers to navigate. The monthly P&I payment required for the average home purchase is up nearly $600 since the start of the year, and factoring in current income levels housing is now within a whisper of the record low affordability seen at the peak of the market in 2006. Even modest increases in either rates or home prices at this point would push us over that line.

“There’s another side to this story, though; one of significant equity growth among current homeowners. With the average-priced home up 42% in value since the start of the pandemic, current homeowners with mortgages are sitting on an average $207,000 in equity that they could choose to tap while still keeping a 20% equity buffer in place. That’s a result of an astonishing $1.2 trillion gain in tappable equity in the first quarter of 2022 alone—the largest such quarterly growth ever recorded. In total, American mortgage holders have more than $11 trillion in tappable equity, also a history-making total. It really is a bifurcated landscape—one that grows ever more challenging for those looking to purchase a home but is simultaneously a boon for those who already own and have seen their housing wealth rise substantially over the last couple of years. Depending upon where you stand, this could be the best or worst of all possible markets,” Graboske concluded.

To review the full report, click here.

Tags: Black KnightHome EquityHousing AffordabilityHousing MarketMay Real Estate Data
ShareTweetShare

RISMedia Staff

Related Posts

Mortgage Mix: Mortgage Rates Edge Lower in the Wake of Banking Turmoil
Agents

Mortgage Mix: Mortgage Rates Edge Lower in the Wake of Banking Turmoil

March 24, 2023
Second Century Ventures Announces Early Acceptances for 2023 REACH U.S. Programs
Agents

Second Century Ventures Announces Early Acceptances for 2023 REACH U.S. Programs

March 24, 2023
NextHome Forms Relationship with Realtor.com
Agents

NextHome Forms Relationship with Realtor.com

March 24, 2023
Evocalize and Side Announce Partnership
Agents

Evocalize and Side Announce Partnership

March 24, 2023
Bank Crashes Add New Uncertainty for Commercial Sector, Apartments
Agents

Bank Crashes Add New Uncertainty for Commercial Sector, Apartments

March 24, 2023
Fathom: Weak Q4 but Strong YoY Revenue, Agent and Transaction Growth
Agents

Fathom: Weak Q4 but Strong YoY Revenue, Agent and Transaction Growth

March 24, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

4 Ways to Leverage Augmented Reality to Improve the Homebuying Experience

From improving the showing experience to helping clients visualize what their new home could look like, here are a few ways that augmented reality could help you improve your client's search for their perfect home. Read more.

Business Tip of the Day provided by

Recent Posts

  • Easy Ways to Incorporate Fitness into Your Busy Routine
  • 5 Home Hazards to Avoid in Winter
  • 6 Ways to Save Money on Your Monthly Bills

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

x
X