H
omeowners have seen significant gains in equity since 2019, with the typical homeowner accumulating $147,000 in housing wealth over the last five years. This translates to an annual profit of nearly half of the average U.S. salary.

    According to Lawrence Yun, Chief Economist at the National Association of Realtors, the likelihood of a housing market crash is minimal due to low distressed property sales and mortgage defaults. In fact, 90% of metros experienced home price gains in the third quarter, with single-family existing-home sales prices climbing in 87% of measured metro areas.

    The national median single-family existing-home price grew 3.1% from a year ago, reaching $418,700. The South led the way in terms of home sales, accounting for 45.1% of all single-family existing-home sales in the U.S., while the Northeast saw the largest year-over-year increase in home prices at 7.8%.

    The Midwest was a standout region, with Illinois experiencing significant price appreciation. Four of the top 10 metros with the largest year-over-year median price increases were in Illinois, with Racine, WI, leading the way with a 13.7% increase.

    While housing affordability remains a challenge, it slightly improved in the third quarter as mortgage rates trended lower. The monthly mortgage payment on a typical existing single-family home decreased by 2.4%, and families spent 25.2% of their income on mortgage payments, down from 27.1% year over year.

    First-time buyers experienced slightly better affordability conditions compared to the previous quarter, with the monthly mortgage payment for a starter home decreasing by 5.5%. However, the high price of housing means that many first-time buyers still struggle to qualify for a mortgage, with some requiring an income of at least $100,000 to afford a 10% down payment mortgage in over 40% of markets.