Is it getting easier to buy a home? According to the Third Quarter Home Affordability Index report from ATTOM Data Solution, the average price per home is at its most expensive in a seven-year period.
Based on data gathered from 414 counties, 24 percent of housing markets in the third quarter were less affordable than in 2009. However, the trend doesn’t seem to have come out of nowhere. These averages went up 22 percent since the second quarter and increased 19 percent over the past year.
From this study, ATTOM found that, out of the counties examined, 101 had an affordability index below 100. This indicates that purchasing an average-priced home is less affordable than when the market hit historic lows in the first quarter of 2005. Counties included some of the country’s most expensive markets, including Dallas, Brooklyn and San Francisco.
Out of all markets surveyed, 63 percent became less affordable over the past year, including in Los Angeles, Maricopa County in Arizona, Miami-Dade County, and Seattle. The degree varied anywhere from two to five percent.
On the other hand, 37 percent saw properties becoming slightly more affordable, with some of the locations being Marin County, Calif., Santa Clara County, Calif., Arlington County, Va. and Maui County in Hawaii. Here, improved affordability ranged from a one- to five-percent increase.
What could be making the housing market out of reach for more individuals? According to the report, the main culprit is the balance between housing costs and wages. In many locations, wages are stagnant or have experienced minimal growth. As a result, higher housing prices essentially outpace what potential buyers could earn. In fact, their data shows this scenario is applicable in 89 percent (368 out of 414) of the counties examined.
Are you currently searching for a new home? If you’re considering a newly constructed custom home, shift your focus to By Carrier’s Connecticut communities. To learn about our properties and energy-efficient homes, contact us today.