According to ATTOM Data Solutions, the median home sales price (nationally) increased to $253,000 in the second quarter of this year, up 7.7% from a year ago — the biggest annual increase since 2014.
ADS’ “US Home Affordability Index” increased to 100 during the second quarter (the end of the fiscal year that ran from July, 2016 – June, 2017) – the lowest affordability rating in nine years (3rd Q, 2008).
According to Daren Blomquist, senior vice president at ADS, “(The) combination of accelerating home price growth and slowing wage growth, along with mortgage interest rates that are up nearly 50 basis points from a year ago, eroded home affordability nationwide to the lowest level in nearly nine years…”
Since the first quarter of 2012, when median home prices hit their lowest level in many years, ADS reports that sales prices nationwide have increased 69 percent – while the average weekly wage for the American worker has increased just nine percent during the same period. And because of a limited inventory there seems to be no easing on the horizon.