Increasing home values impact second quarter affordability
“Home price appreciation in many markets across the nation are a sign that the housing recovery continues to move forward,” NAHB Chairman Tom Woods, a home builder from Missouri, said. “At the same time, the cost of building a home is rising due to higher costs for buildable lots and skilled labor.”
Between April and June 2015, 63.2 percent of existing and new homes sold were considered affordable to families with a median U.S. income amounting to $65,800. This is a decrease compared to the 66.5 percent of homes sold that were considered to be affordable to families with median incomes in the first quarter of 2015.
“Though affordability edged slightly lower in the second quarter, the HOI remains well above 50, where half the households can afford half the homes sold,” NAHB Chief Economist David Crowe said. “Low mortgage rates, pent-up demand and continued job growth should contribute to a gradual, steady rise in housing throughout the year.”
Home buyers eagerly anticipate the future changes of the housing market.