Affordability Abyss

June existing home sales slipped to a disappointing 4.09 million annual rate. The combination of high rates and prices finds housing affordability consistently 30% below the average of the last several decades. The income needed to qualify for a starter home is now $93,264 but median first-time buyer income is $71,651. So far, months-of-supply of for-sale housing is barely up Y-o-Y. If it rises more, prices will start falling.