“Good news for buyers, inventory is up nearly 33% from last year. Sales are down right now, but this is still a little under two months of homes available for sale, so we’re still We are deeply in the seller’s market, demand remains strong but slightly cooling with an average number of days in the market of 10 days and an average number of days in the market of 20. Sales are still slow due to population growth. It’s a great opportunity.”
of Georgia Real Estate Association Median home sales prices were up 13% year-over-year in September, with inventories up 39% and supply up 60%. The median home sale price in the state was $340,000.
According to last month, Georgia MLS, Atlanta’s median home sales price plunged further, reaching $379,970. Total sales for the month decreased by 32.9% year-on-year.
To can afford a house in the capital of Georgia Currently, aspiring homeowners need a gross pre-tax household income of $116,890 if they want to stay within the 28% debt-to-income ratio threshold suggested by most accountants.according to 2020 US CensusAtlanta’s median household income is $64,179, only 54.9% of that total.
according to realtor.comRising mortgage rates have made housing less and less affordable in Atlanta, which can be traced back to the current gap between mortgage rates and Treasury yields.
“By contrast, the benchmark 10-year U.S. Treasury yield is up about 2.5 points.” Telis demo on Realtor.com report. “What this means is that the gap between mortgage rates and Treasury yields, or spreads in financial terms, has widened.
“For the past decade, figures tracked by Autonomous Research show that the difference between national average mortgage rates and 10-year Treasury yields has averaged 1.8 percentage points. ) yields over 4%, and the current spread is around 3 points, about as high as it has been this century.”
Gina Curro, Bank of America’s head of agency MBS strategy, said a further widening gap between mortgage rates and Treasury yields could exacerbate the woes of the domestic housing market in the near future. told the site.
“In the past few sessions, there has been enough investor interest to keep spreads down, but not enough to tighten them,” she said. “The risk is that without that demand, spreads could widen.”
According to Nadia Evangelou, senior economist and director of forecasts for the National Association of Realtors, the economic downturn and rising mortgage rates have made housing less affordable nationwide, ultimately disproportionately affecting black communities. is giving
“Rising mortgage rates could increase monthly mortgage payments by $1,000, with minority groups likely to be more affected.” she said in a press release“Mortgage rates hit an all-time low in 2021, but not everyone has been able to benefit from these low rates. Up nearly a percentage point, home ownership among black Americans has risen by 2 percentage points, and with mortgage interest rates of 7%, only 15% of black households can afford a typical home today. 30% for white households, so black families may lag further behind in home ownership compared to white families.”
For housing to become affordable again, the Federal Reserve must first get a firm grasp on inflation. Central banks have not purchased agency mortgage-backed securities as they did during previous housing market crises, reducing the willingness of many commercial banks to purchase related bonds.
The Federal Reserve and private banks own about 75% of the agency MBS market, according to Realtor.com. The gap could continue to widen as the Federal Reserve fights inflation, does not buy mortgage-backed securities, and commercial banks refrain from making related bond investments.