Welcome to the LITopAgent.com Blog

2017-04-06 11:22:27
Worsening Affordability Reaches 8-Year Low

Housing affordability worsened in the first quarter of 2017, with 95 out of the 379 counties analyzed in the ATTOM Data Solutions Q1 2017 U.S. Home Affordability Index below “normal” affordability levels.

On a national scale, the Index was 103—an eight-year low. An Index reading below 100 indicates the amount of wages needed to afford a median-priced home is above the historic average for the market in question.

Wages, still, have improved in some markets. In 53 percent of the counties analyzed for the Index, annual wage growth bested home price growth—the highest percentage since the first quarter of 2012.

“Home affordability continued to worsen in the first quarter—not surprising given the continued strong growth in home prices combined with the recent rise in mortgage rates,” says Daren Blomquist, senior vice president at ATTOM Data Solutions. “Stronger wage growth is the silver lining in this report, outpacing home price growth in more than half of the markets for the first time since Q1 2012, when median home prices were still falling nationwide. If that pattern continues, it will help turn the tide in the eroding home affordability trend.”

In 12 of the counties analyzed, less than 15 percent of wages were needed to afford a median-priced home. These counties include Clayton County, Ga. (10.8 percent), Baltimore, Md. (11.8 percent), Bibb County, Ga. (12.2 percent), Saginaw County, Mich. (12.4 percent) and Trumbull County, Ohio (12.5 percent).

In 97 of the counties analyzed, however, more than 43 percent of wages were needed to afford a median-priced home—and according to guidelines from the Consumer Financial Protection Bureau (CFPB), 43 percent is the maximum debt-to-income-ratio allowed for a “qualified mortgage.” These counties include Los Angeles, San Diego, Orange, Riverside and San Bernardino, Calif., and Kings (Brooklyn), Queens, New York (Manhattan) and Bronx, N.Y. In Kings County and New York County, over 100 percent of wages are needed to afford a median-priced home.

Blog Archive
2020-02-20 12:59:45
What's the skinny on jumbo loans?

2020-02-20 12:58:21
5 Advantages of Buying & Selling NOW!

2020-02-20 12:56:26
What is private mortgage insurance?

2020-02-03 08:26:10
Market Movement

2020-02-03 08:04:48
Economic Roundup February 2020

2020-01-30 11:10:10
5 myths surrounding home loans

2020-01-29 13:29:03
Cost vs. Value: 2020 Home Improvement Projects With the Highest ROI

2020-01-27 08:13:06
Housing is Healthy Heading Into 2020

2020-01-24 08:48:40
What Happens at Closing?

2020-01-20 12:30:23
Inspections vs. Appraisals vs. AVMs

2020-01-20 12:28:39
Credit Scores Demystified

2020-01-09 14:29:00
A quick guide to home loans on investment properties

2020-01-09 14:27:25
What will 2020 Bring for Borrowers?

2020-01-08 10:55:31
4 Resolutions for Home Improvements to Make in 2020

2020-01-08 10:54:12
4 Things NOT to Do When Putting Your Home on the Market

2020-01-03 07:01:20
Economic Roundup January 2020

2019-12-20 09:53:47

2019-12-13 07:55:34
How to know when refinancing is a good or bad idea

2019-12-11 08:50:10
Exploring the benefits of VA home loans

2019-11-25 09:22:55
Market Movement November 2019

2019-11-21 08:45:55
Easy Ways to Give Back During The Holidays

2019-11-20 10:50:13

2019-10-31 12:05:18
Your mortgage refinance checklist:

2019-10-30 08:06:05
Pending Sales Surprise, Up 1.5 Percent

2019-10-28 09:03:58
Learn About Your Local Neighborhood -- Or One You're Considering

Click here to see ALL articles.

Comment on this Article

Your Name:
Your Email:
Verify:  Please enter the numbers shown to help eliminate spam.