Median-priced single-family homes and condos were less affordable in the second quarter of this year compared to historical averages in 98% of counties around the nation with enough data to analyze, according to a new report from ATTOM.
Nationwide, the median single-family home value rose by 10% from the first to second quarter of the year to $350,000, a new record. ATTOM stated this is one of the biggest quarterly increases in the past decade, adding the median price in the second quarter was 2% above the previous peak hit one year ago. The ATTOM report noted the typical $1,949 cost of mortgage payments, homeowner insurance, mortgage insurance and property taxes nationwide currently encompass 33.4% of the average annual $70,031 wage.
As a result, ATTOM noted that major homeownership expenses on typical homes are considered unaffordable to average local wage earners during the second quarter 420 of the 574 counties in analyzed for the report, or three-quarters of the country.
“The U.S. housing market has done an about-face following a downturn that threatened to usher in an extended period of flat or falling prices. With that has come another blow to how much house the average worker around the country can afford,” said Rob Barber, CEO for ATTOM. “Whether this is just a temporary blip amid this year’s peak buying season or a sign of another extended price surge is anyone’s guess. But any predictions of a market demise were certainly premature – and house hunters are feeling the pinch.”
Separately, the Mortgage Bankers Association reported the national median payment applied for by purchase applicants increased 2.5% to $2,165 in May from $2,112 in April.
“Homebuyer affordability eroded further in May as prospective buyers continue to grapple with high interest rates and low housing inventory,” said Edward Seiler, MBA’s associate vice president of housing economics and executive director of the trade group’s Research Institute for Housing America. “While supply remains low, we do expect that inventory will pick up in the near term, which will provide more opportunities for borrowers to buy a home.”
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