Skip to main content

NAHB: Housing Affordability at 10-Year Low

Phil Hall
Nov 09, 2018
www.nrmlaonline.org

Housing affordability opportunities hit during the third quarter that has not been seen since 2008, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index.
 
The new index report determined that only 56.4 percent of new and existing homes sold in the third quarter were affordable to families earning the median income of $71,900, down from 57.1 percent in the second quarter. The national median home price inched up from $265,000 in the second quarter of 2018 to $268,000 in the third quarter—and while it was a relatively minimal increase, it nonetheless resulted in the highest quarterly median price since the NAHB tracked this data. While this occurred, average mortgage rates rose by 5 basis points in the third quarter to 4.72 percent, up from 4.67 percent in the second quarter.
 
Syracuse, N.Y., was the nation’s most affordable major housing market for the second consecutive quarter, with 88.2 percent of all new and existing homes sold being affordable to families earning the area’s median income of $74,100. And for the fourth straight quarter, San Francisco was the least affordable major market, with only 6.4 percent of the homes sold in the third quarter of 2018 being affordable to families earning the area’s median income of $116,400.
 
“Continuing home price appreciation and rising interest rates coupled with persistent labor shortages are contributing to housing affordability concerns,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. “Builders are increasingly focusing on managing home construction costs so that they do not outpace wage gains.”

 
Published
Nov 09, 2018
Evergrande Steadily Repays Debt While Taking On New Risk

Evergrande Chairman Hui Ka Yan has ambitious plans, signaling last Friday that the firm wants to move away from housing and focus on making electric cars. 

Industry News
Oct 26, 2021
Planet Home Lending Reports Q3 Gains In Asset Management, Servicing And Originations

The Planet Home Financial Group, LLC, parent company of Planet Home Lending, LLC and Planet Management Group, LLC reported steady growth across its servicing, correspondent and private-client channels.

Industry News
Oct 26, 2021
CFPB, DOJ And OCC Hit Trustmark National Bank For 'Deliberate' Redlining

The Consumer Financial Protection Bureau and U.S. Department of Justice, in conjunction with the Office of the Comptroller of the Currency are taking action against Trustmark National Bank for alleged redlining violations.

Industry News
Oct 25, 2021
Reports: Evergrande Group Makes $83.5M Interest Payment

Faltering Chinese development firm fends off default with payment to international bondholders.

Industry News
Oct 22, 2021
FAR Establishes Borrower Engagement Division

Finance of America Reverse LLC announced its formally established Borrower Engagement Division.

Industry News
Oct 22, 2021
Automating Appraisals No Panacea For Removing Bias

With racism 'grandfathered in' to housing prices in minority neighborhoods, a solution to 'unconscious bias' is difficult to find

Industry News
Oct 21, 2021