(1) In the U.S., median existing single-family home prices rose 12% year over year to $313,500, the National Association of Realtors (NAR) said. In Q3 2020, home prices rose in all 181 metros that NAR tracks. In 117 metros, there were double-digit price gains from one year ago. For added perspective, in Q2, only 15 metro areas had double-digit price gains.
(2) Lawrence Yun from National Association of REALTORS®: “Favorable mortgage rates will continue to bring fresh buyers to the market. However, the affordability situation will not improve even with low-interest rates because housing prices are increasing much too fast.”
(3) Per World Economic Forum: "Between 1948-1979, the growth in productivity and wages were relatively similar, with an increase of 108% and 93%, respectively. But between 1979-2019, whilst net productivity has continued to increase by an expected 70%, hourly compensation in the country is less than a fifth of that at just 12%."
Those three bouncing balls form a troublesome intersection. We've written before on some of these topics:
- Affordable housing in DFW and beyond
- The student loan crisis
- What a Biden administration might do for student loans
- What Biden might do for housing overall
COVID has clearly been a seller's market, especially in DFW. The insanely-low rates, which are not poised to go back up anytime soon, have brought more buyers to the market, as Lawrence Yun noted above. But the interest rates are only one part of the entire equation, especially as housing prices increase 12% or more year-over-year.
This is part of the reason that we're seeing older, more affluent renters in Plano and Frisco, among other locations.
We will keep checking the data and are always ready to help you find an apartment (or a home).
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