How Unaffordable Is That House In The Listings

Dated: April 4 2014

Views: 602

Pretty unaffordable.

Seattle-based Zillow reports that more than half of homes on the market in seven cities including Portland are beyond the reach of residents earning the median salary.


Nationwide, just over one-third of homes listed for sale are beyond the reach of those with median-level incomes.
The most unaffordable cities were Miami (62.4 percent), Los Angeles (57.2 percent), San Diego (55.3 percent), San Francisco (55.2 percent),Denver (52.8 percent), San Jose (50.9 percent) and Portland (50.3 percent).
In Zillow’s hometown, 37 percent of homes are considered unaffordable.
Zillow calculates affordability by comparing area median income to the monthly mortgage payment. A market is unaffordable if the share of monthly income needed to buy a home is greater now than it was prior to the latest housing bubble. In Portland, where the median household is $59,724, it takes about 20.5 percent of a family’s monthly income or $1,022 to afford a median-priced home, $259,100, If mortgage rates rise to 5 percent in the next year, it will take 23.4 percent of monthly income to support mortgage payments.
“As affordability worsens, we’re already beginning to see more of the kinds of worrisome trends we saw en masse during the years leading up to the housing crash," said Stan Humphries, Zillow’s chief economist. "These include greater reliance on non-traditional home financing, smaller down payments and greater pressure to move further away from urban job centers in order to find affordable housing options."
RC
Source
Blog author image

Mark Ross

For Mark Ross, founder of Ross NW Real Estate and professional real estate broker, real estate has always been the career of choice. During his 30 years in the industry, Mark has gained experience in ....

Latest Blog Posts

Fannie Mae Cuts Origination Forecast For 2022

Limited inventory, supply chain disruptions and concerns about inflation have led economists at Fannie Mae to lower their mortgage origination forecasts for the remainder of this year and into 2022

Read More

How Long Does A Home Seller Have To Respond To An Offer

When you make an offer on a house, you might be wondering: How long does it take a home seller to respond to your offer?There’s nothing worse than sitting around waiting—especially when you’re

Read More

Forbearance Numbers Fall As Borrower Exits Remain High

Servicers’ forbearance portfolio volume fell once again last week, as exits remained elevated compared to requests or re-entries. The total number of loans in forbearance dropped by eight basis

Read More

How Much Does It Cost To Build A House And Is It Cheaper To Buy Or Build

How much does it cost to build a house? The median price of constructing a single-family home is $296,652. That’s for an average-sized house of 2,594 square feet, which boils down to $115 per

Read More