Despite a slight drop in mortgage rates, housing affordability worsened in the second quarter of 2017 due to rising house prices
Despite a slight drop in mortgage rates, housing affordability worsened in the second quarter of 2017 due to rising house prices.
The National Association of Home Builders/Wells Fargo Housing Opportunity Index shows that 59.4% of new and existing homes between the start of April and the end of June were affordable to families with the median income of $68,000.
“The job market continues to gain steam and this is boosting housing demand,” said NAHB Chief Economist Robert Dietz. “Meanwhile, growing incomes and attractive mortgage rates are helping to keep housing affordable by partially offsetting ongoing home price appreciation. Home prices will continue to rise as inventory remains tight. NAHB expects the housing market will continue to make gradual gains in 2017.”
Home prices rose to a median $256,000 in the second quarter, from $245,000 in the first.
The most affordable major housing market for the third straight quarter was Youngstown-Warren-Boardman, Ohio-Pa. where 93% of homes sold in the quarter rated affordable for those on the median $54,600 income in the area.
For the 19th consecutive quarter, San Francisco-Redwood City-South San Francisco, Calif., was the nation’s least affordable major housing market with just 7.6% of homes sold affordable to families earning the area’s median income of $113,100.
The National Association of Home Builders/Wells Fargo Housing Opportunity Index shows that 59.4% of new and existing homes between the start of April and the end of June were affordable to families with the median income of $68,000.
“The job market continues to gain steam and this is boosting housing demand,” said NAHB Chief Economist Robert Dietz. “Meanwhile, growing incomes and attractive mortgage rates are helping to keep housing affordable by partially offsetting ongoing home price appreciation. Home prices will continue to rise as inventory remains tight. NAHB expects the housing market will continue to make gradual gains in 2017.”
Home prices rose to a median $256,000 in the second quarter, from $245,000 in the first.
The most affordable major housing market for the third straight quarter was Youngstown-Warren-Boardman, Ohio-Pa. where 93% of homes sold in the quarter rated affordable for those on the median $54,600 income in the area.
For the 19th consecutive quarter, San Francisco-Redwood City-South San Francisco, Calif., was the nation’s least affordable major housing market with just 7.6% of homes sold affordable to families earning the area’s median income of $113,100.
