How Unaffordable Is That House In The Listings

Dated: April 4 2014

Views: 610

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
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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 ....

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