|Housing Affordability Edges Higher in First Quarter|
|RISMEDIA, Thursday, May 15, 2014— Slightly lower median home prices along with steady mortgage rates contributed to higher housing affordability in the first quarter, according to the recently released National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). |
In all, 65.5 percent of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $63,900. This is slightly higher from the 64.7 percent of homes sold that were affordable to median-income earners in the fourth quarter.
Meanwhile, the national median home price dipped from $205,000 in the fourth quarter to $195,000 in the first quarter while average mortgage interest rates were virtually unchanged, moving from 4.54 percent to 4.57 percent in the same period.
“Housing affordability remains strong and this is an encouraging sign as the spring home building season moves into high gear,” says NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del.
“As home prices and mortgage interest rates are unlikely to go down, the first quarter HOI is another indicator that this is an opportune time to buy,” says NAHB Chief Economist David Crowe.
Syracuse, N.Y., was the nation’s most affordable major housing market, as 93.7 percent of all new and existing homes sold in this year’s first quarter were affordable to families earning the area’s median income of $67,700. Meanwhile, Cumberland, Md.-W.Va., claimed the title of most affordable smaller market, with 96.3 percent of homes sold in the first quarter being affordable to those earning the median income of $54,100.
Other major U.S. housing markets at the top of the affordability chart in the first quarter included Buffalo-Niagara Falls, N.Y.; Youngstown-Warren-Boardman, Ohio-Pa.; Harrisburg-Carlisle, Pa.; and Dayton, Ohio; in descending order.
Smaller markets joining Cumberland at the top of the affordability chart included Springfield, Ohio; Kokomo, Ind.; Mansfield, Ohio; and Lima, Ohio.
For a sixth consecutive quarter, San Francisco-San Mateo-Redwood City, Calif., held the lowest spot among major markets on the affordability chart. There, just 13.3 percent of homes sold in the first quarter were affordable to families earning the area’s median income of $100,400.
Other major metros at the bottom of the affordability chart included Santa Ana-Anaheim-Irvine, Calif.; Los Angeles-Long Beach-Glendale, Calif.; New York-White Plains-Wayne, N.Y.-N.J.; and San Jose-Sunnyvale-Santa Clara, Calif.; in descending order.
All of the five least affordable small housing markets were in California. At the very bottom of the affordability chart was Santa Cruz-Watsonville, where 21.1 percent of all new and existing homes sold were affordable to families earning the area’s median income of $77,900. Other small markets at the lowest end of the affordability scale included Napa, Salinas, San Luis Obispo-Paso Robles, and Santa Rosa-Petaluma, respectively.
For more information, visit www.nahb.org/hoi.
This article shows that housing is still very affordable and interest rates are still so low, it is the perfect time to buy. If you would like to find out more about what programs are available to 1st time buyers give me a call at 630-234-8240.
Century 21 affiliated
May 15, 2014
Now is the time to Buy!!!
- May 15, 2014
- apps for the New Year (1)
- Buyers (1)
- Down Payment Assistance Program (1)
- Facebook After Death (1)
- Financing (1)
- Finding your inner peace (1)
- First Homebuyers (1)
- Flipping houses (1)
- Foreclosure, Bankruptcy, and Short Sale (1)
- FSBO'S Save Money Hire an Agent (1)
- Gardening Tips (1)
- Gas Leaks in your home? (1)
- Getting Organized (1)
- Home improvement (1)
- Home Maintenance (1)
- Home Sales poised to take off (1)
- Homeownship (1)
- Housing market (1)
- Housing Market Trends (1)
- How to have a Greener Home (1)
- Increasing Home Value (1)
- Insulating your home (1)
- Interest Rates for mortgages (1)
- Interest Rates, Housing Market (1)
- Moving and Home remodeling (1)
- Moving Tips (1)
- Moving your family (2)
- New Home purchase, buying a home (1)
- New Listing (1)
- News on the housing market (1)
- Open Houses (1)
- Pet Friendly Rentals (1)
- Power of positive thinking, improve your life (1)
- Preparing your home for summer (1)
- Real Estate Home Prices (1)
- Rent vs Own (3)
- Reseach for Older Homes (1)
- Researching Old Homes (1)
- Reverse Mortgages (1)
- Saving for Retirement (3)
- Short Sales (1)
- Smart Appliances (1)
- Social Media (1)
- Spring Cleaning tips (1)
- Staging a home for sale (3)
- Staging Your Home to Sell (1)
- The Life of a Realtor (1)
- Tips for home up keep (3)
- Tips for investing in Real Estate (1)
- Vacation Tips (3)
- Wallpaper (1)
- Where is Cable TV Today? (1)