Schedule a Free Consultation With Mike Today! 1-800-867-1583
RealtyTrac® http://www.realtytrac.com released housing data on this date indicating that 9% of housing markets are less affordable in Quarter 1 of 2016 as compared to historic normal levels.
The data from RealtyTrac® indicates that median home prices as compared to average wage data have increased in 9% of the 456 counties analyzed, as compared to 2% of the counties in Quarter 1 of 2015. Details of the historic norms over an extended period of time can be found at http://www.realtytrac.com/news/home-prices-and-sales/q1-2016-realtytrac-home-affordability-index/. In the 1st Quarter of 2016 the average wage earner will need 30.2 percent of their monthly wages to make monthly mortgage payments. This compares to 26.4 percent of monthly wages needed for monthly mortgage payments in the 1st Quarter of 2015.
The concern with the rise of home affordability for the average family is that more families will potentially be put in a greater threat for financial distress. Fortunately, home affordability is still well below what was seen in the peak of the housing bubble in 2006.