According to the RealtyTrac report, home price appreciation is outpacing wage growth in 76% of U.S. housing markets in the last two years. RealtyTrac showed that nationwide home price appreciation is outpacing wage growth by a 13:1 ratio in the same time period.
What this would mean is that housing prices would become unaffordable again, but is that really the case? Â Doug digs deeper into these numbers to analyze how they will affect you.
Home prices are not what is driven by your income home payments are. Are mortgage payments increasing at the same amount of home prices? Absolutely not. Listen in as Doug explains using real life examples and the Housing Affordability Index below. You can also download the Housing Affordability Index here.
NATIONAL ASSOCIATION OF REALTORS®
| Housing Affordability Index Median Priced Existing Single-Family Home | Mortgage Rate* | MonthlyP & I Payment | Payment as a % of Income | Median Family Income | Qualifying Income** | Affordability Indexes | |||||||||||||||||||
| Year | Composite | Fixed | |||||||||||||||||||||||
| 2012 | 177,200 | 3.83 | 663 | 12.7 | 62,527 | 31,824 | 196.5 | 193.3 | |||||||||||||||||
| 2013 | 197,400 | 4.00 | 754 | 14.1 | 64,030 | 36,192 | 176.9 | 177.9 | |||||||||||||||||
| 2014 | 208,900 | 4.31 | 828 | 15.2 | 65,321 | 39,744 | 164.4 | 171.4 | |||||||||||||||||
| 2014 | Jan | 187,900 | 4.54 | 765 | 14.2 | 64,532 | 36,720 | 175.7 | 172.4 | ||||||||||||||||
| 2014 | Feb | 188,800 | 4.47 | 763 | 14.1 | 64,719 | 36,624 | 176.7 | 174.2 | ||||||||||||||||
| 2014 | Mar | 196,500 | 4.38 | 785 | 14.5 | 64,918 | 37,680 | 172.3 | 169.3 | ||||||||||||||||
| 2014 | Apr | 201,000 | 4.39 | 804 | 14.8 | 65,063 | 38,592 | 168.6 | 165.3 | ||||||||||||||||
| 2014 | May | 212,000 | 4.34 | 843 | 15.5 | 65,218 | 40,464 | 161.2 | 158.5 | ||||||||||||||||
| 2014 | Jun | 223,000 | 4.23 | 876 | 16.1 | 65,374 | 42,048 | 155.5 | 153.2 | ||||||||||||||||
| 2014 | Jul | 222,500 | 4.25 | 876 | 16.1 | 65,478 | 42,048 | 155.7 | 153.6 | ||||||||||||||||
| 2014 | Aug | 219,100 | 4.24 | 861 | 15.8 | 65,583 | 41,328 | 158.7 | 156.5 | ||||||||||||||||
| 2014 | Sep | 209,600 | 4.21 | 821 | 15.0 | 65,626 | 39,408 | 166.5 | 163.9 | ||||||||||||||||
| 2014 | Oct | 208,000 | 4.29 | 822 | 15.0 | 65,646 | 39,456 | 166.4 | 164.4 | ||||||||||||||||
| 2014 | Nov | 207,900 | 4.16 | 809 | 14.8 | 65,803 | 38,832 | 169.5 | 167.2 | ||||||||||||||||
| 2014 | Dec r | 209,200 | 4.16 | 815 | 14.8 | 65,897 | 39,120 | 168.4 | 167.0 | ||||||||||||||||
| 2015 | Jan p | 199,800 | 4.04 | 767 | 13.9 | 66,145 | 36,816 | 179.7 | 178.0 | ||||||||||||||||
| This | Month | Year | |||||||||||||||||||||||
| Month | Ago | Ago | |||||||||||||||||||||||
| Northeast | 247,900 | 3.97 | 943 | 14.8 | 76,330 | 45,264 | 168.6 | 168.2 | 162.0 | ||||||||||||||||
| Midwest | 151,900 | 4.07 | 585 | 10.6 | 66,276 | 28,080 | 236.0 | 221.0 | 232.4 | ||||||||||||||||
| South | 174,900 | 4.08 | 674 | 13.1 | 61,893 | 32,352 | 191.3 | 174.0 | 185.9 | ||||||||||||||||
| West | 294,500 | 4.02 | 1,128 | 19.6 | 69,216 | 54,144 | 127.8 | 122.1 | 124.3 | ||||||||||||||||
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