Home affordability comes through higher wages and declining interest rates outweighing price increases.

ATTOM Data Solutions, Irvine, Calif, said its second-quarter U.S. Home Affordability Report showed median home prices of single-family homes and condos became more affordable than historical averages in 49% of U.S. counties, up from 31% a year ago. Compared to historical levels, ATTOM said 200 of the 406 counties analyzed in the second quarter are now more affordable, up from 126 of the same group of counties a year ago. The gains have come as higher wages, along with cheaper home loan costs resulting from declining interest rates, outweigh ongoing price increases that commonly have exceeded 5% in the current quarter. “The latest affordability numbers reveal a win-win situation for sellers as well as buyers,” Teta said. “Prices are rising again around the country during the current home-buying season, despite worries that the economic impact of the coronavirus pandemic would halt the nine-year runup in home values. But a combination of wage gains and declining interest rates are helping to override the increases and make homes more affordable in large swaths of the United States. Virus pandemic concerns are still quite valid and may show up in the coming months, which could hurt prices as well as affordability. That remains a significant potential cloud hanging over the market. But as of now, things are looking up for people on both sides of the buying equation.”

Source: ATTOM Data Solutions