Charleston homes sales slid 32% in November as median price climbed 10%

Table of Content

• Typical home price in South Dakota: $292,488 (68% of typical U.S. price)
• Charleston home sales tumbled 32% in November as median price climbed 10%
• Typical home price in Arkansas: $177,710 (41% of typical U.S. price)
• Typical home price in West Virginia: $137,286 (32% of typical U.S. price)
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Homes in Connecticut cost less than the typical price across the country while the median income in the state beats the U.S. median by 20%. The typical cost is less than half the typical U.S. price, which makes up for a median income 25% below the norm. At the same time, homeowners have been reluctant to list their homes and there's a housing production shortfall. Housing supply shrunk through 2021, but housing inventory began to recover in 2022.

Despite below average housing costs in North Carolina, median income 11% less than the national average leads residents in the state to miss the 28% rule. New Jersey is home to high housing costs and high salaries (31% more than the national median). Earnings don't quite outweigh the expensive home prices, so mortgages take up a significant chunk of what homeowners make.

Typical home price in South Dakota: $292,488 (68% of typical U.S. price)

Data included in the press release are the number of new single-family houses sold; the number of new single-family houses for sale; and the median and average sales prices of new homes sold. Excluded from these estimates are "HUD-code" manufactured home units. The median price of a new home jumped 20% higher compared with last year, to $450,600 pushing the monthly mortgage payment $720 higher, a 57% increase at today’s average mortgage rate. This resulted in one of the biggest seller's markets in history, although that may be changing as mortgage rates increase and housing supply expands.

It may come as a surprise that the most expensive city isn't a larger metro, such as Los Angeles or even San Francisco. However, San Jose's price per square foot is partially due to low inventory and high housing demand in the Bay Area. Adjusting for inflation, the price per square foot of new single-family homes has increased just 24.6% from 1980. We've already found that raises in annual income are barely keeping pace with inflation. Since 2000, the overall price of goods in the U.S. has risen by 67%.

Charleston home sales tumbled 32% in November as median price climbed 10%

The typical home in Idaho costs $466,435 and measures 1,932 square feet. However, homeownership is also high, with 70.4% of residents owning their homes. Idaho has one of the highest homeownership rates in the country, with 70.4% of its residents owning their homes. The number of homes sold but not started ticked up in July, reaching 165,000 homes, the most since February. The number of homes for sale at the end of July increased for the seventh month in a row as new home supply reached the highest level in over a decade, 10.9 months’ supply. An increase in supply offers hope to buyers, suggesting the potential for more affordable options.

One of the more intriguing findings is that among respondents looking to buy a home in the next few years, just over half, 53 percent, said they had expedited those plans because of current market conditions. The number of listings declined again last month to 34,894, down 24.2% year over year and our report shows that we have just 2.86 months of inventory – half of what is considered a balanced market. We've improved the traditional real estate model with modern technology to cut costs, not quality. The San Jose, California, metro area has the highest price per square foot as of 2021 at $801 per square foot. Total permits continue to hit new highs, suggesting that some inventory relief is on the way for those with flexible timing. Only roughly 1 in 10 new homes for sale is already completed, so patience is essential.

Typical home price in Arkansas: $177,710 (41% of typical U.S. price)

Mortgage rates up more than 350 basis points since late November 2021, there are few, if any, deals in sight for buyers looking to finance a home purchase. However, some buyers are finding success by relocating to a more affordable area, or by taking advantage of the negotiation opportunities that high inventory and tapering demand create. When applying for a mortgage, homebuyers with a FICO® Score of 760 or higher typically qualify for the lowest mortgage rates. Although Washington's median income is 20% more than the U.S. median, that's not nearly enough to match its home prices. Residents will have a hard time making the average mortgage payment work.

California, New York, and Hawaii are among the states with the highest housing prices and the lowest levels of homeownership. On the other hand, states with relatively low housing costs tend to have higher levels of homeownership. West Virginia, which has the lowest typical-house cost, also has the highest homeownership rate, with 79.6% of residents owning their own home. Reflecting high demand amid rising costs, the median sales price for new homes jumped 13.4% from one year ago even as seasonally-adjusted supply improved to 6.1 months. Just 8% of new homes sold in January were priced below $300,000, compared to 26% one year earlier. New homes sales dropped for the fourth consecutive month in April, to the lowest level in two years, closing in on the quarantine-low of April 2020.

Mortgage payments are high despite Oregon residents earning 13% more than the national average. In Minnesota, homeowners normally have a little breathing room in their budgets. The typical home price is below the U.S. price, and incomes beat the country as a whole by 16%. With inexpensive housing, Indiana is one of the easier states to be a homeowner. The median income is 2% lower than the U.S. median, but residents still don't need to spend too much of that income on their mortgages.

The typical house price is 37% lower than the countrywide number, and incomes are 9% above the national median. Even though the median income is 15% higher than the U.S. median, extremely high prices put housing out of reach for many residents. West Virginia has the cheapest home prices according to Zillow at 40% of the typical U.S. price. Mortgage payments there take up 16.5% of the state's median income on average, the lowest rate in the nation. Last month, 1,238 properties changed hands at a median price of $400,000, up nearly 10 percent, or $35,000, from one year earlier for houses in Berkeley, Charleston, Colleton and Dorchester counties. The state's sales price median, $777,500, was down 3 percent from October and represented the third consecutive monthly decline.

California cities, such as San Francisco and San Jose, feature steep prices but smaller square footage on average. These are not the cities for folks who are on a budget, but rather those who are looking to really indulge and invest in smaller, but potentially more lucrative, homes. Some metros, such as Denver, with large median square footage come with a high price per square foot ($287).

For weekly email updates on residential real estate news, sign up here. New listings for the overall market at the end of last month were down almost 8% but almost 46% higher in the top price range. "As consumers decide to enter the market, now more than ever, working with a Realtor® is crucial to navigating this changing market," Beadling added. "Realtors® understand local market conditions and can help set expectations for both buyers and sellers who want to enter the market." Home sales slid 10% in November to 9,663 compared to October and are down nearly 29% over the same period last year.

However, the costs of homeownership in the United States can be startling. According to Federal Reserve Economic Data, the median price of houses sold in 2022 is $428,700. The Zillow Home Value Index, which measures only the middle price tiers of homes, sets the cost of a typical home in the United States at $344,141. Home values increased 20% in the twelve months between April 2021 and May 2022. Meanwhile, the median household income in the United States is $67,521 a year. This means the median family can only afford a mortgage of around $250,000 and may find themselves being priced out of owning a home.

The median sale price of new single-family homes has increased 515% since 1980. In 2021, the median sale price was $397,100, compared to 1980's $64,600. The rise in the median sale price has exceeded the rise in median square footage by 928% since 1980. Examining price per square foot is more important than in the past because housing prices are also outpacing income. We analyzed which major metro areas are least affordable and how price per square foot has changed over time. Prices and square footage are based on the most up-to-date and comprehensive data from 2021.

Typical home price in West Virginia: $137,286 (32% of typical U.S. price)

Fed is anticipated to continue hiking rates, including at next week’s meeting, as inflation continues to come in far above target. This will keep upward pressure on mortgage rates and is likely to weigh on the pace of sales ahead. It may also mean a higher fall-through rate for new home contracts whose purchasers have not locked in a mortgage rate as part of their financing package.