RealtyTrac: Housing market affordability shifts across country
Posted on Monday, December 8, 2014 at 8:27:52 AM
Where in the country can you secure affordable residential financing and a great home?
According to recent analysis from RealtyTrac, the answer is changing. Different parts of the country are now either more or less affordable than their historical averages. For example, Eaton county, Michigan is the most cost-friendly, while Kings county, New York is on the other end of the spectrum.
Overall, buying a median-priced home in October meant spending at least 26 percent of median income, RealtyTrac explained.
"While 99 percent of markets have not returned to the irrational affordability levels during the previous housing bubble, 1 in 5 markets have now exceeded their historical affordability norms, which is a strong sign that either a new home price bubble is forming in those markets or that home price appreciation will soon plateau until incomes can catch up," noted Daren Blomquist, vice president of RealtyTrac.
In addition, Black Knight Financial Services reported that economic and housing conditions are helping borrowers remain above water. In October, there were only 4 million homeowners with negative equity, much less than the number only two years ago.
Overall, the national trends related to the housing market have been favorable for buyers and sellers alike.