More Americans within reach of homeownership
WASHINGTON – Feb. 25, 2013 – In all, 74.9 percent of U.S. homes sold between the beginning of October and end of December were affordable to families earning the U.S. median income of $65,000, up nearly a percentage point from the 74.1 percent of homes sold the previous quarter, according to the latest National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).
“The most recent housing affordability data should be encouraging to many prospective home buyers, because it shows that homeownership remains within reach of median-income consumers even as most local markets appear to be on a recovery path,” says NAHB Chairman Rick Judson. In the latest HOI, 259 out of 361 metros qualify as “improving.”
“The median price of all new and existing homes sold in the fourth quarter of 2012 was $188,000, essentially unchanged from the previous quarter’s $189,000 that marked a nearly three-year high,” says NAHB Chief Economist David Crowe. “Affordability remains historically high thanks to favorable mortgage rates, even as national home price indexes show some rise in values.”
Ogden-Clearfield, Utah held its position as the nation’s most affordable major housing market for a second consecutive quarter at the end of 2012. There, 93.7 percent of families earning the area’s median income of $71,500 could afford a home.
New York-White Plains-Wayne, N.Y.-N.J. switched places with San Francisco-San Mateo-Redwood City, Calif. as the nation’s least affordable market. Just 28.4 percent of homes sold in San Francisco during the fourth quarter were affordable to families earning that area’s median income of $103,000.
In The Sunshine State, affordability ranged from a high of 93 percent in Lakeland-Winter Haven, where more than nine out of 10 residents could afford a home, to the state’s lowest-ranking metro, Miami-Miami Beach-Kendall, where less than 7 in 10 (66 percent) of resident could afford homeownership. Of the 22 Florida markets, only three had an affordability index below the national average.
HOI ranked the following Florida cities for affordability:
1. Lakeland-Winter Haven – 93%
2. Ocala – 90.6%
3. Deltona-Daytona Beach-Ormond Beach – 88.3%
4. Gainesville – 86.8%
5. Punta Gorda – 86.8%
6. Panama City-Lynn Haven-Panama City Beach – 85.6%
7. Tallahassee – 85.6%
8. Jacksonville – 85.2%
9. Port St. Lucie – 84.9%
10. Pensacola-Ferry Pass-Bren – 84.1%
11. Palm Coast – 82.9%
12. Crestview-Fort Walton Beach-Destin – 80.8%
13. Orlando-Kissimmee-Sanford – 80.7%
14. Tampa-St. Petersburg-Clearwater – 80.6%
15. Sebastian-Vero Beach – 79.7%
16. Palm Bay-Melbourne-Titusville – 79.1%
17. Fort Lauderdale-Pompano Beach-Deerfield Beach – 78.0%
18. Cape Coral-Fort Myers – 79.6%
19. North Port-Bradenton-Sarasota – 75.4%
20. West Palm Beach-Boca Raton-Boynton Beach – 74.7%
21. Naples-Marco Island – 69.7%
22. Miami-Miami Beach-Kendall – 66.0%
The HOI measures the percentage of homes sold in a given area affordable to families earning the area’s median income. Core Logic, a data and analytics company, collects prices of new and existing homes from court records. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Agency.
For information on homes for sale in Port St Lucie, FL contact Tradition Realtors(and creators of this informational blog) Jeremy Glass & Elyse Wagner, RE/MAX Masterpiece Realty at firstname.lastname@example.org or 772-249-9485.