Housing Market Struggles Persist Despite Price Drops and Record Low Affordability

The fourth-quarter 2023 U.S. Home Affordability Report by ATTOM reveals that median-priced homes and condos remain less affordable in 99% of counties across the nation compared to historical averages. Major expenses on median-priced homes consume 33.7% of the average national wage, a level considered unaffordable by lending standards. While home prices have declined quarterly, they are still up annually in three-quarters of local markets. Home ownership expenses have stayed virtually the same from the third to the fourth quarter, but are worse than a year ago and far weaker than in 2021. The report highlights mixed trends in home prices and mortgage rates, with affordability remaining a financial stretch for many potential buyers.