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Affordable Housing in Your Market …

Lately, there have been many headlines circulating about whether or not there is an “affordability issue forming in the housing market.”

If you are considering selling your current house and moving up to the home of your dreams, but are unsure whether or not to believe what you’re seeing in the news, let’s look at the results of the latest Housing Affordability Report from the National Association of Realtors (NAR).

According to NAR:

“A value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that a family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.”

  • The national index results for August came in at 141.2.
  • This is up from 138.9 in July, but down 8.3% from last August’s value of 153.9.

One big factor in determining affordability each month is the interest rate available at the time of calculation. In August 2017, the 30-year fixed rate mortgage interest rate was 4.19%. This August, the rate rose to 4.78%!

With an index reading of 141.2, housing remains affordable in the U.S.

Regionally, affordability is up in three out of four regions. The Northeast had the biggest gain at 6.2%. The South had an increase of 2.4% followed by the West with a slight increase of 0.1%. The Midwest had the only dip in affordability at 4.8%.

Despite month-over-month changes, the most affordable region remains the Midwest, with an index value of 175.7. The West remains the least affordable region at 101.2. For comparison, the index was 146.7 in the South, and 151.2 in the Northeast.

Bottom Line

If you are thinking of selling your home, contact a local Berkshire Hathaway HomeServices real estate professional who can help you understand the affordability conditions in your marketplace.

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Hugh Williams

Hugh is a life long resident of the State of Florida, and is pleased to reside in the beautiful seaside community of Amelia Island. A graduate of University of Florida with High Honors and a major in Business, Hugh also went on to attend the Dick Grove School of Music and the Guitar Institute of Technology in Los Angeles. With his long-time friend and business partner, Dee Chaplin, he is proud that they have achieved the reputation and status of owning and operating a top producing Berkshire Hathaway HomeServices real estate franchise on beautiful Amelia Island. Together they have supported the community by raising thousands of dollars for local charities and by founding the Amelia Island Beach Walk. Hugh's personal interests include playing guitar, home recording, fishing, golfing and real estate investing. For a highly qualified Professional Realtor, look to Hugh Williams. His background in business and knowledge of the local market makes him the Realtor of Choice on Amelia Island, Florida.

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