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“Wrong direction”: Homes are now affordable in 4 out of 10 US counties

House hunters are increasingly being priced from real estate transactions, according to a new analysis, and most people in more than four of the ten US counties are unable to obtain home ownership.

Home prices soared by more than 10% in two-thirds of the 569 counties tracked by real estate data provider Attom Data Solutions. These counties together have about 250 million Americans, according to a research firm that analyzed publicly recorded sales certificate data for the counties that recorded the most real estate transactions between April and June. Represents a person.

The number of counties currently considered out of control increased by about 20% year-on-year and increased from 205 counties in the second quarter to 242 counties in the second quarter. Atom said.

Todd Teta, Attom’s Chief Product Officer, shows that the latest data shows that the US housing market is “going in the wrong direction.” Soaring home prices have raised concerns for some market observers that soaring real estate prices could foretell the same type of overheating that led to the 2006 housing bubble.The current market is Supported by ultra-low mortgage rates Housing demand from millennials.

What is “affordable”?

“It’s a problem that 20% more counties aren’t affordable,” Teta said. “We are starting to sneak up into what is generally out of reach nationwide. Everything that causes mortgage rates to rise and prices to rise goes beyond the turning point.”

Rising home prices mean higher cost of ownership nationwide, even though most of the counties in the United States are still considered affordable, Teta said. .. A typical home currently requires 25.2% of the average national wage of about $ 64,000. This is the highest point since the third quarter of 2008, up from 22.2% of average wages in the previous year.

Home ownership is considered affordable if the homeowner pays less than 28% of the typical local annual income of the property, including mortgage payments, home insurance, and property tax costs. Studies have shown that as real estate prices rise, homebuyers need to pay above that threshold in about 43% of the country’s counties.

These counties are well known as Brooklyn, where homebuyers need more than 100% of Brooklyn from Berkeley, West Virginia, where homebuyers need to pay about 28% of their regular income to buy a home. It varies from Kings County, New York. A typical annual income to buy a house.

“It’s becoming more affordable in most counties,” Teta said.

inventory shortage

The shortage of homes on the market is one of the main drivers of price increases, and buyers tend to bid on homes. Full cash offer — And you can even avoid the following traditional sales contingencies: Home inspection.. It also restrains you from becoming a seller.

With 20% fewer properties on the market than they were a year ago, some homeowners choose to leave them alone rather than struggling to find a new place to live. I am. However, it creates a vicious circle, reduced inventories lead to a bidding war, and some homeowners are reluctant to put their homes up for sale.


Investors with deep pockets drive homes …

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Nancy Vanden Horten, chief economist at Oxford Economics, said, “Last month’s home inventory was up 2.5 months at a May selling pace, up from 2.4 months in April.” “The six-month supply has historically been considered a sign of a balanced housing market.”

10 Most Affordable County in the United States

  • Schuylkill County, Pennsylvania, suburbs of Allentown, 5.5% of annual income required to buy a home
  • Bibb County, Georgia (Macon), 8 percent
  • Cambria County, Pennsylvania, Suburbs of Pittsburgh, 8.2%
  • Macon County, Illinois (decatur), 9.1%
  • Peoria County, Illinois, 10.4%
  • Rock Island County, Illinois, 10.4%
  • Wayne County, Michigan, 10.7%
  • Broome County, NY, 10.7%
  • Delaware County, Indiana, 11.2%
  • Chautauqua County, NY, 11.2%

10 Most Affordable County in the United States

  • Kings County, NY (Brooklyn), 100.8% of annual income required to buy a home
  • Marin County, California (other than San Francisco), 81.4%
  • Santa Cruz County, California, 76.2%
  • Queens County, NY, 68.7%
  • Monterey County, California (other than San Francisco), 65.9%
  • Nassau County, NY, 63%
  • San Luis Obispo County, California, 62.4%
  • Sumner County, Tennessee, 62.1%
  • Orange County, CA, 59.2%
  • Napa County, California, 59.1%

“Wrong direction”: Homes are now affordable in 4 out of 10 US counties

Source link “Wrong direction”: Homes are now affordable in 4 out of 10 US counties

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