In its third quarter report for 2018, the National Association of Realtors finds that home prices appreciated again over the previous quarter. Ninety-three percent of markets show home price growth.
Even though home prices for single-family homes are growing slower than before and median family incomes are gaining, affordability continues to get tighter, impacted by rising interest rates and local market conditions. The five metro areas with the strongest home price growth year-over-year in the NAR study are Decatur, Ill. (19.1 percent), Boise City-Nampa, Ida. (18.3 percent), Norwich-New London, Conn. (14.9 percent), Kennewick-Richland, Wash. (14.8 percent), and Decatur, Ala. (14.7 percent).
For the US, at the 5 percent down-payment threshold, the qualifying income amount for the third quarter of 2018 was $64,480. At the 10 percent down-payment mark, the qualifying income was $61,086, and with a 20 percent down-payment, the income required to qualify for a mortgage was $54,299. The West led all regions with the highest qualifying income while the Midwest had the lowest income for 5 percent, 10 percent and 20 percent down payments on a single-family home.