High home prices driven by a
The median income of $107,000 in 2022 represented an all-time high, the organization's profile of home buyers and sellers found. The figure is $19,000 higher than it was in last year's report (which used 2021 data) at $88,000.
But for first-time home buyers, the increase was even larger, at nearly $25,000 more than in the year before, said Jessica Lautz, NAR's deputy chief economist, in the press release.
The 2022 median household income of first-time buyers was at a high of $95,900, up from $71,000. For repeat buyers, the median income was $111,700, while one year earlier it was $96,000.
It is a consequence of home prices remaining high, which is one of the reasons why mortgage payments are also up. Prices went up 0.4% between September and October and 7% year-over-year in October, a First American Data & Analytics report said.
"Preliminary October sale prices continue to indicate that the lack of supply is constraining the market more than sinking affordability, which reached another record low last month," Mark Fleming, chief economist at First American, said in a press release. "Nationally, when you can't buy what's not for sale, even if you can afford it with an 8 percent mortgage, it's no surprise that house price appreciation continued for a seventh straight month."
The Mortgage Bankers Association's
"In a still-competitive housing market, more well-off home buyers were able to have their bids accepted by offering larger down payments and even by paying cash," said Lautz.
The other time the median income for all buyers was over $100,000 was in 2020, although for repeat purchasers, it was over that mark for every year since 2017 except in 2021.
The report otherwise covers activities between July 2022 and June 2023.
First-time home buyers made up 32% of the market during the study period, up from 2022's low of 26%; it is still below the 1981 and beyond historical average of 38%.
The typical down payments for first-time buyers was 8%, the highest since 1997. For repeat buyers, the 19% typical down payment was the most since 2005.
"First-time buyers tiptoed back into the market this year with less competition and
Meanwhile, 80% of buyers financed their transaction, a gain of two percentage points from the 2022 survey, but down from 87% in 2021, when on July 1 of that year, mortgage rates
"Home buyers in the past year were more diverse, both racially and ethnically, with increases noted among minority buyers, buyers who were born outside of the U.S. and buyers whose
Still, 81% of buyers were white, versus 88% one year ago. Another 7% were Hispanic, 7% were Black and 6% Asian/Pacific Islander.
The share of buyers from outside the U.S. increased two percentage points to 10%, while 6% spoke a primary language other than English, an increase of one percentage point.In the
"Buyers wanted an expert to help them find the right home and conduct negotiations," said Lautz. "Sellers also relied on real estate agents and brokers to price their home competitively and market it to potential buyers."
But some in the mortgage industry are concerned that the verdicts and/or related legal settlements