There has been an improvement in housing affordability but the quarterly increase still leaves affordability weaker than a year ago
There has been an improvement in housing affordability but the quarterly increase still leaves affordability weaker than a year ago.
A report from ATTOM Data Solutions analyzed 406 counties across the US and found improved affordability in 60% in the third quarter of 2017 compared to the previous three months.
But when compared to the third quarter of 2016, 79% of the counties were less affordable.
Home prices were less affordable than their historic affordability averages in 184 out of 406 of the counties analyzed for the index (45%), down from 49% in the previous quarter but still up from 21% a year ago.
"Falling interest rates in the third quarter provided enough of a cushion to counteract rising home prices in most U.S. markets and provide at least some temporary relief for the home affordability crunch," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "More sustainable relief for the affordability crunch, however, will need to be some combination of slowing home price appreciation and accelerating wage growth."
Wages are growing faster than home prices in 48% of the markets surveyed but has weakened from 53% in the second quarter of 2017, and 50% in the first quarter.
Buying a median-priced home required the highest percentage of average wages in Kings County (Brooklyn), New York (125.8%), followed by Marin County (San Francisco), California (104.7%); Santa Cruz County, California (101.6%); Westchester County, New York (91.0%); and New York County (Manhattan), New York (90.8%).
A report from ATTOM Data Solutions analyzed 406 counties across the US and found improved affordability in 60% in the third quarter of 2017 compared to the previous three months.
But when compared to the third quarter of 2016, 79% of the counties were less affordable.
Home prices were less affordable than their historic affordability averages in 184 out of 406 of the counties analyzed for the index (45%), down from 49% in the previous quarter but still up from 21% a year ago.
"Falling interest rates in the third quarter provided enough of a cushion to counteract rising home prices in most U.S. markets and provide at least some temporary relief for the home affordability crunch," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "More sustainable relief for the affordability crunch, however, will need to be some combination of slowing home price appreciation and accelerating wage growth."
Wages are growing faster than home prices in 48% of the markets surveyed but has weakened from 53% in the second quarter of 2017, and 50% in the first quarter.
Buying a median-priced home required the highest percentage of average wages in Kings County (Brooklyn), New York (125.8%), followed by Marin County (San Francisco), California (104.7%); Santa Cruz County, California (101.6%); Westchester County, New York (91.0%); and New York County (Manhattan), New York (90.8%).
