• About Us
  • Contact Us
Today Headline
No Result
View All Result
  • breaking news today
    • Politics news
    • Sports
    • Science News & Society
  • Entertainment News
    • Movie
    • Gaming
  • Technology News
    • Automotive
    • Software & IT
  • Health News
    • Lifestyle
    • Insurance
  • Finance News
    • Money
  • Enterprise
  • Contact Us
  • breaking news today
    • Politics news
    • Sports
    • Science News & Society
  • Entertainment News
    • Movie
    • Gaming
  • Technology News
    • Automotive
    • Software & IT
  • Health News
    • Lifestyle
    • Insurance
  • Finance News
    • Money
  • Enterprise
  • Contact Us
No Result
View All Result
TodayHeadline
No Result
View All Result

Affordability Slips In Q1 As Home Prices, Mortgage Rates Continue To Climb

1 year ago
in Real Estate
Reading Time: 3 mins read



The median price for a single-family home was more expensive than historical averages in 79 percent of counties nationwide — a jump from 1Q21 when only 38 percent of counties saw prices exceed historical averages, according to data released Thursday by Attom Data Solutions.

Home affordability in America continued to erode during the first quarter of 2021, as rising mortgage rates and prices continued to box more Americans out of homeownership, new data shows.

The median price for a single-family home was more expensive than historical averages in 79 percent of counties nationwide — a jump from the first quarter of 2021 when only 38 percent of counties saw prices exceed historical averages, according to a new report Thursday from the real estate data curator Attom Data Solutions.

“It’s certainly no surprise that affordability is more challenging today for prospective homebuyers than it was a year ago,” Rick Sharga, executive vice president of market intelligence for ATTOM, said in a statement. “Historically low mortgage rates and higher wages helped offset rising home prices over the past few years, but as home prices continue to soar and interest rates approach 5 percent on a 30-year fixed rate loan, more consumers are going to struggle to find a property they can comfortably afford.”

Wage growth seen during the pandemic labor market has not managed to offset the massive growth in housing costs for a majority of Americans, with the portion of wages required for homeownership costs growing at the fastest pace in more than 15 years, making whatever wage growth workers got over the pandemic pithy, especially in the face of 40-year inflation highs.

Home prices are outpacing wage gains in four of every five markets, with 473 of the 586 counties analyzed seeing greater home price growth, according to Attom. Wage growth surpassed home price growth in only 113 of the counties with big, expensive cities including Chicago, Brooklyn, San Jose, and Seattle among the areas where wage growth was higher.

Attom found that 26.3 percent of the average national wage of $66,560 was needed for the typical cost of a single-family home in the first quarter — the highest percentage needed since the third quarter of 2008. That 26.3 rate was up from 24.9 percent in the fourth quarter of 2021, and 21.8 percent in the first quarter of 2021 — the largest annual increase since 2005, according to Attom.

While costs are growing at an alarming rate, they remain below the 28 percent standard used by lenders to determine whether a home was affordable are not in roughly half the counties analyzed by Attom. 283 of the 586 counties analyzed — 48 percent — required less than 28 percent of the average annual wage.

While home prices may not be rising as extravagantly, it’s likely homebuyers in those areas will still have their budget stretched by rising rates and inflation, Sharga said.

“The ‘x-factor’ is what impact 8 percent inflation rates will have on these households, and their ability to meet their financial obligations. Rising food and energy prices could be a hidden factor that makes affordability even more of a challenge for homebuyers and makes it more difficult to make ends meet for current homeowners,” he said.

Email Ben Verde



Related Posts

Real Estate

Mortgage demand fades as rates hit two-decade high

No one can predict the...

Read more

What’s Next For DSCR Loans? Updates For 2024 and Beyond

What Is a HELOC (Home Equity Line of Credit)?

Record Share Of Homebuyers Flee Into The Path Of Climate Change

How to Retire with “Turnkey” Rental Properties (as a COMPLETE Beginner)

Load More
  • Trending
  • Comments
  • Latest

Robots Are Taking Over Your Surgery (and You Should Be Excited)

Douglas Elliman Fair Housing Case Reveals Agent Confusion Over Law

development

How The Development of Cryptocurrency Led to the Development of Online Games?

Apple’s Eddy Cue defends Google default search deal

45 Best Eighth Grade Science Fair Projects and Classroom Experiments

Writers’ strike: The long and painful journey of the WGA/AMPTP deal

Will OG Xbox Classic MechAssault Return? – Unlocked 614

Pokémon are coming to the Van Gogh Museum to teach the world about art

Niall Horan declares himself King of The Voice after stealing Reba McEntire's crown

Niall Horan declares himself King of The Voice after stealing Reba McEntire's crown

Police officers ‘misusing body-worn cameras across England and Wales’

About Us

Todayheadline the independent news and topics discovery
A home-grown and independent news and topic aggregation . displays breaking news linking to news websites all around the world.

Follow Us

Latest News

Writers’ strike: The long and painful journey of the WGA/AMPTP deal

Will OG Xbox Classic MechAssault Return? – Unlocked 614

Pokémon are coming to the Van Gogh Museum to teach the world about art

Writers’ strike: The long and painful journey of the WGA/AMPTP deal

Will OG Xbox Classic MechAssault Return? – Unlocked 614

Pokémon are coming to the Van Gogh Museum to teach the world about art

  • Real Estate
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2023 All rights are reserved Today headline

No Result
View All Result
  • Real Estate
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2023 All rights are reserved Today headline