Home Affordability Reaches An All-Time High

Home Opportunity Index (2005-2012)Home affordability moved higher last quarter, boosted by the lowest mortgage rates in history, a rise in median income, and slow-to-recover home prices throughout Georgia and the country.

According to the National Association of Home Builders, the quarterly Home Opportunity Index read 75.9 in 2011’s fourth quarter. More than 3 in 4 homes sold between October-December 2011, in other words, were affordable to households earning the national median income of $64,200.

Never in recorded history have U.S. homes been as affordable on a national level. Even on a regional and local level, affordability soared.

Affordability was highest in the Midwest; 7 of the 10 most affordable markets nationwide were in the nation’s heartland.

The Top 5 most affordable U.S. cities in Q4 2011 were:

  1. Kokomo, IN (99.2% home affordability)
  2. Fairbanks, AK (97.5% home affordability)
  3. Cumberland, WV (96.9% home affordability)
  4. Lima, OH (96.0% home affordability)
  5. Rockford, IL (95.5% home affordability)

These are each considered “small markets.”  The most affordable “major market” was the Youngstown, Ohio area, where 95.1% of homes sold were affordable to households earning the area’s local median income.

Not surprisingly, America’s “least affordable cities” were regionally-concentrated, too, with 7 of the 10 least affordable markets located in either California or Texas.

San Francisco (#3), Santa Ana (#4), and Los Angeles (#5) led for the Golden State but, for the 15th consecutive quarter, the New York metropolitan area took “Least Affordable Market” honors.

Just 29 percent of homes in and around New York City were affordable to households earning the area’s median income last quarter. It’s a large jump from the quarter prior during which 23 percent of homes were affordable.

The rankings for all 225 metro areas are available for download on the NAHB website.

For more information about the Atlanta area real estate market, please email me at ed@edshort.com or call me at 404.918.2500.

~ Ed Short, Atlanta REALTOR®






 

 

Start spreading the news…

Advertisements

The 10 Longest Commutes In The United States

Longest CommutesAccording to the Census Bureau, more than 3.2 million U.S. workers spend over 3 hours commuting to and from work each day.

Commutes exceeding 90 minutes in each direction are known as “extreme commutes” in Census Bureau parlance. As compared to typical commute times nationwide, they’re aptly named.

The national, average commute time is just 25.1 minutes.

For home buyers in Metro Atlanta or in any U.S. city, make sure to make commute times a consideration before placing an offer on a property. The length of your daily commute will make an impact on your life.

Studies shows that shorter commutes are linked to higher levels of life satisfaction. Long commutes are linked to low levels of life satisfaction.

As ranked by the Census Bureau, here are the 10 cities with the longest average commute times, where commuting is defined as the total time to arrive at work, inclusive of all modes of transportation (i.e. automobile, train, subway, foot, or other) :

  1. New York / North New Jersey / Long Island : 34.6 minutes
  2. Washington, DC / Arlington / Alexandria : 33.4 minutes
  3. Poughkeepsie / Newburgh / Middletown, NY: 32.2 minutes
  4. Bremerton / Silverdale, WA : 30.8 minutes
  5. Chicago / Naperville / Joliet, IL : 30.7 minutes
  6. Winchester, VA : 30.3 minutes
  7. Atlanta / Sandy Springs / Marietta, GA 30.1 minutes
  8. Riverside / San Bernardino / Ontario, CA : 30.0 minutes
  9. Stockton, CA : 29.8 minutes
  10. Baltimore / Towson, MD : 29.7 minutes

By contrast, the shortest commute belongs to residents of Great Falls, Montana. The average commute for the city’s 58,000 residents is 14.2 minutes.

A long commute to work should not deter you from moving to a particular home or neighborhood, but your time-en-route should be a consideration. Before making an offer on a home , therefore, practice the rush hour commute from your potential new neighborhood in the morning, and back to it again that evening.

Then, imagine making the commute every day.

For more information about the Atlanta area real estate market, please email me at ed@edshort.com or call me at 404.918.2500.

~ Ed Short, Atlanta REALTOR®