Firming home prices in many housing markets resulted in a modest drop in nationwide housing affordability in the second quarter of 2015, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).
In all, 63.2 percent of new and existing homes sold between the beginning of April and end of June were affordable to families earning the U.S. median income of $65,800. This is down from the 66.5 percent of homes sold that were affordable to median-income earners in the first quarter.
The national median home price increased from $210,000 in the first quarter to $230,000 in the second quarter. Meanwhile, average mortgage rates edged slightly lower from 4.03 percent to 3.99 percent in the same period.
Youngstown-Warren-Boardman, Ohio-Pa. was rated the nation’s most affordable major housing market, as 90.6 percent of all new and existing homes sold in this year’s second quarter were affordable to families earning the area’s median income of $53,700.
Meanwhile, Kokomo, Ind. claimed the title of most affordable small housing market in this year’s second quarter. There, 95.5 percent of homes sold during the second quarter were affordable to families earning the area’s median income of $55,200.
For the 11th consecutive quarter, San Francisco-San Mateo-Redwood City, Calif. was the nation’s least affordable major housing market. There, just 11 percent of homes sold in the second quarter were affordable to families earning the area’s median income of $103,400.
All five least affordable small housing markets were in California. At the very bottom of the affordability chart was Santa Cruz-Watsonville, Calif., where 18.2 percent of all new and existing homes sold were affordable to families earning the area’s median income of $87,000.
Visit nahb.org/hoi for tables, historic data and details.
View this original post on NAHB’s blog, Eye on Housing.