The pool of affordable homes is shrinking for many homebuyers. A new report on housing opportunity, the share of homes that would be affordable for households earning the median income, showed the market affordability by region.
"Buyers should be prepared," says the NAHB chief economist, Robert Dietz. "It's going to be more expensive to afford a house over the course of 2018. ... Interest rates went up a little bit, and home prices went up as well." Realtor.com cites the lack of housing inventory available on the market, and fewer new homes being built as primary causes of home price increases, and accelerated competition.
Households bringing in at least $68,000 a year, the national median, could afford about 59.6 percent of all newly constructed and existing (previously lived in) homes sold in the fourth quarter of 2017, according to a recent National Association of Home Builders report ... The quarterly report looked at three figures: home prices, mortgage interest rates, and the median household income, across the nation, and in 238 metropolitan markets.