Rising Home Prices Across the U.S. Impacting Consumer Affordability
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According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released this week, firming home prices in many housing markets resulted in a modest drop in nationwide housing affordability in the second quarter of 2015.
"Home price appreciation in many markets across the nation are a sign that the housing recovery continues to move forward," said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo. "At the same time, the cost of building a home is rising due to higher costs for buildable lots and skilled labor." - David Crowe
"Though affordability edged slightly lower in the second quarter, the HOI remains well above 50, where half the households can afford half the homes sold," said NAHB Chief Economist David Crowe. "Low mortgage rates, pent-up demand and continued job growth should contribute to a gradual, steady rise in housing throughout the year."
In all, 63.2 percent of new and existing homes sold between the beginning of April and end of June were affordable to families earning the U.S. median income of $65,800. This is down from the 66.5 percent of homes sold that were affordable to median-income earners in the first quarter. -
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