The median price of a US home reached $253,000 in the second quarter of 2017 to become the least affordable median price since the third quarter of 2008
The median price of a US home reached $253,000 in the second quarter of 2017 to become the least affordable median price since the third quarter of 2008.
"While home price appreciation in the second quarter accelerated to the fastest pace in more than three years, wage growth turned negative, posting the biggest year-over-year decrease in five years in Q4 2016 — the most recent average weekly wage data available," said Daren Blomquist, senior vice president at ATTOM Data Solutions.
"That combination of accelerating home price growth and slowing wage growth, along with mortgage interest rates that are up nearly 50 basis points from a year ago, eroded home affordability nationwide to the lowest level in nearly nine years," he added.
The ATTOM Data Solutions Home Affordability Index is based on the percentage of average wages needed to make monthly house payments on a median-priced home with a 30-year fixed rate mortgage and a 3 percent down payment, including property taxes, home insurance and mortgage insurance.
The results show that 45% of the 464 US counties analyzed were less affordable in Q2 2017 than their historic norms, the highest share since the end of 2009. Home prices grew faster than average wages in 87% of counties.
Denver had 3 of the 5 least affordable counties in the US: Denver County, Adams County and Arapahoe County; with Genesee County in the Flint metro (Michigan) and Weld County in the Greely metro (Colorado) completing the top 5.
Counties with the highest share of average wages needed to buy a median-priced home in Q2 2017 were Marin County, California, in the San Francisco metro area (126.4%); Kings County (Brooklyn), New York (125.9 percent); Santa Cruz County, California (112.3%); Summit County, Utah in the Summit Park metro area (107.8%); and Monroe County, Florida, in the Key West metro area (100.3%).
"While home price appreciation in the second quarter accelerated to the fastest pace in more than three years, wage growth turned negative, posting the biggest year-over-year decrease in five years in Q4 2016 — the most recent average weekly wage data available," said Daren Blomquist, senior vice president at ATTOM Data Solutions.
"That combination of accelerating home price growth and slowing wage growth, along with mortgage interest rates that are up nearly 50 basis points from a year ago, eroded home affordability nationwide to the lowest level in nearly nine years," he added.
The ATTOM Data Solutions Home Affordability Index is based on the percentage of average wages needed to make monthly house payments on a median-priced home with a 30-year fixed rate mortgage and a 3 percent down payment, including property taxes, home insurance and mortgage insurance.
The results show that 45% of the 464 US counties analyzed were less affordable in Q2 2017 than their historic norms, the highest share since the end of 2009. Home prices grew faster than average wages in 87% of counties.
Denver had 3 of the 5 least affordable counties in the US: Denver County, Adams County and Arapahoe County; with Genesee County in the Flint metro (Michigan) and Weld County in the Greely metro (Colorado) completing the top 5.
Counties with the highest share of average wages needed to buy a median-priced home in Q2 2017 were Marin County, California, in the San Francisco metro area (126.4%); Kings County (Brooklyn), New York (125.9 percent); Santa Cruz County, California (112.3%); Summit County, Utah in the Summit Park metro area (107.8%); and Monroe County, Florida, in the Key West metro area (100.3%).
