Maybe you saw this headline last month from many major media outlets: “Home prices reach record high in June.”
It’s true. The median price for existing homes hit $435,300. That’s a scary number. It’s also not true in most cases.
Real estate is very much a local phenomenon. So median and average prices are not what you’ll pay – because you’re not average.
Home prices
For example, while the median home price nationally is $435,000, it’s a much more reasonable (but still high, if you ask me) $270,200 in Arkansas. Obviously, what’s skewing that national price are places like Massachusetts ($702,400) and Washington DC (an eye-watering $1,360,000).
As the economy has fluctuated, these local disparities have only grown. Obviously, living in New York City is more expensive than in York, Pennsylvania. But the real estate firm Zillow says there’s another reason, too…
Affordability and access is gradually improving where builders have been able to keep up with demand, showing why building more homes is so critical.
It’s supply and demand. Build more houses, and the price for all of them drop. And where is it easier to build? Not in big cities that are already built out. Another factor, Zillow says, are local zoning laws, which can change by county.
“When demand for homes surged, builders were able to respond fastest in areas with fewer land-use restrictions,” Zillow says. “That gave buyers more options and sellers more homes to move into, freeing up existing supply.”
So it really does matter where you live.
Foreclosures
The same thing happens with foreclosures – which means the bank takes possession of your home because you couldn’t make the payments. Just last week, there was this headline: “Foreclosure Activity Jumps 13% From A Year Ago To Reach 2025 Peak.”
Any foreclosure is one too many, but the fact that 36,128 properties nationwide had foreclosure filings in July obscures something important: A few states are responsible for most of those.
For example, this national foreclosure statistic is downright scary: Nationwide, one in every 3,939 housing units faced a foreclosure filing in July. But once again, that’s inflated by just a couple of states. For example, Nevada had the highest rate at one in every 2,326. Maryland’s rate was one in every 2,566.
If you don’t live in either state, your probability drops a lot.
Housing counseling
Of course, most Americans aren’t worried about foreclosure – because they can’t afford a home in the first place.
Another hyper-local situation is housing counseling. The federal government runs the Housing and Urban Development department, better known as HUD. But it in turn works with a network of privately-run regional housing counseling agencies.
For more than 50 years, this arrangement has helped millions of people get into homes they wouldn’t be able to afford for a long time – if ever. They even offer foreclosure-prevention counseling.
Since Consolidated Credit is based in Florida, we’ve offered housing counseling in our area for many years. To find an agency in your area, use HUD’s search tool.
You can learn about programs like the First-Time Homebuyer Program and speak with a HUD-certified counselor who can help you navigate all the complexities of home ownership – because the costs definitely don’t end with the mortgage payments.
Don’t get discouraged, get counseling
If you’re thinking of buying a home now or in the future, and if the headlines are depressing you, don’t give up. Find a housing counseling agency near you, and contact them first. These certified counselors are experts in everything to do with homebuying. This is their job. Let them work for you.
