Affordability Slips In Final Quarter Of 2020

Affordability conditions worsened during the final quarter of 2020, according to new numbers from ATTOM Data Solutions. Their fourth-quarter U.S. Home Affordability Report found that homes and condos were less affordable than their historical average in 55 percent of the 499 included counties. That’s up from 43 percent one year ago. Todd Teta, ATTOM’s chief product officer, says affordability has been slipping, but that can change. “Home prices have continued rising throughout 2020 and the housing market has remained remarkably resilient in the face of the brutal economic fallout from the coronavirus pandemic,” Teta said. “The future remains wholly uncertain and affordability could swing back into positive territory. But for now, things are going in the wrong direction for buyers.” The report compared average wage data with median home prices in order to determine whether or not a home buyer’s monthly expenses – including mortgage payment, property tax, and insurance – would require more than 28 percent of their monthly income. (source)

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