Data also showed that affordability had slumped to a 15-year low, while 30-year mortgage rates jumped above 5% during the same period.
Rick Sharga, executive vice president of market intelligence at the company, noted that homes had previously remained relatively affordable “due to historically low mortgage rates and rising wages”.
However, with interest rates almost doubling, homebuyers were now faced with monthly mortgage payments that were between 40% and 50% higher than they were a year ago, which many prospective buyers “simply can’t afford”.
He added that “extraordinarily” low levels of homes for sale combined with strong demand had caused home prices to soar over the last few years.
The report revealed that borrowers now needed more than 28% of the average $67,587 wage in the US to meet the ownership costs on a median-priced, single-family home or condo – “a ceiling considered affordable by common lending standards”, the report said.