If you need assistance, please call 317-590-2901

Expect More Gripes About Home Affordability

Thursday, February 9, 2017   /   by Carlos J Higareda

Expect More Gripes About Home Affordability

Housing affordability dropped to the lowest level in seven years at the end of 2016. It now takes 22.2 percent of a person’s median income to make the monthly principal and interest payment on a median-priced home, according to new findings from Black Knight Financial Services. That amounts to a 10 percent increase in the fourth quarter alone.

Economists blame rising mortgage rates, price increases, and sluggish income growth for the growing housing affordability problem.

Home prices increased gradually throughout last year. In December 2016, home prices were 7.2 percent higher compared to a year ago, according to CoreLogic. Some markets, such as California, Colorado, and Texas, prices are reaching new record highs as well.

Still, "nationally, homes remain more affordable than pre-bubble 'norms,' but it's clear that the market is now experiencing the most pressure — from an affordability perspective — since the housing recovery began," says Ben Graboske, executive vice president of Black Knight Data & Analytics.

Source: “Houses Are the Least Affordable They’ve Been in Seven Years: Here’s Why,” CNBC (Feb. 7, 2017)

eXp Realty
Carlos Higareda
107 N State Road 135
Greenwood, IN 46142

The source of the Licensed Listings is BLC® listing service. The Licensed Listings are confidential information of BLC® listing service. The BLC® listing information is provided by the Metropolitan Indianapolis Board of REALTORS® from a copyrighted compilation of listings. The compilation of listings and each individual listing are © 2024 Metropolitan Indianapolis Board of REALTORS® All Rights Reserved. The information provided is for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. All properties are subject to prior sale or withdrawal. All information provided is deemed reliable but is not guaranteed accurate, and should be independently verified.
This site powered by CINC: www.cincpro.com