Measuring how affordable the housing market is typically involves making some comparisons. Of course, with any comparison, what you discover depends on what you’re comparing. Home prices, after all, could be down from where they were last month but up compared to the same time lt year. That’s why the best comparison is usually one that takes the broadest and longest view.
Housing Affordability Report
For ATTOM Data Solutions’ fourth-quarter 2019 U.S. Home Affordability Report, they calculated current housing affordability levels then compared them to their long-term average. What they found was 53 percent of the 486 counties included in the report were more affordable than their historic average. That includes counties in and around Chicago, Washington D.C., and New York. Areas like Middlesex County (outside Boston), Orange County, (outside Los Angeles), and Bay County (Panama City) showed big gains in the past year.
Low Rates, Higher Pay
Todd Teta, chief product officer with ATTOM, says mortgage rates and wages are key. “Homes were actually a bit more affordable because of declining mortgage rates combined with rising pay to overcome the continued price run-up,” Teta said. “As long as people are earning more money and shelling out less to pay off home loans, the market should remain strong with prices continuing to rise, at least in the near term.” Check out this cool ‘Affordability Heat Map’ from ATTOM Data Solutions here.
Take advantage of current low rates and rising pay by getting pre-approved here.