It's no secret that housing prices and mortgage rates have been steadily rising in recent years (you can see the lowest mortgage rates you might qualify for here).
According to CoreLogic, home prices nationwide jumped by more than 20% in April 2022 compared to the same month the previous year.
And a variety of other data sources support the notion that there is an affordability crisis. According to a recent mortgage analysis by Black Knight.
When housing costs are compared to current income levels, it now takes 33.7 percent of median household income to buy the average priced home, just a smidgeon less than the all-time high of 34.1 percent reached in June 2006.
Furthermore, according to the most recent CoreLogic data, the majority of home markets in the United States are currently overvalued. CoreLogic discovered that two of the 20 largest housing markets are really rated "average."
Chicago and St. Louis are the two, which highlights the fact that purchasers in the same city can generally afford properties in the neighborhood.
Meanwhile, a "overvalued" housing market occurs when prices surpass the ordinary ability of buyers in the same city to afford a home; out-of-region buyers and huge investors have typically pushed up prices in these markets.
Condos are popular in congested urban areas, which is why there are so many in Chicago, but after the pandemic, individuals needed more space.