In the September edition of RealtyHop’s Home Affordability Index, the real estate company examined the proportion of income that American households would have to spend on homeownership costs, finding Wichita, Kansas to be the most affordable this month.
RealtyHop’s Home Affordability Index analyzes homeownership and census data from the survey conducted by the US Census Bureau (ACS) to provide a index of housing affordability and the burden of home ownership in the 100 most populous cities in the country. Median home prices are calculated using more than 500,000 listed in the RealtyHop database during the month prior to publication.
To calculate the index , the following statistics are used: Projected Median Family Income; Median listing prices of homes for sale via RealtyHop data; Local property taxes through ACS census data; and Mortgage expenses, assuming a 30 year mortgage, 5.5% interest rate, and down payment of 20%.
Top 5 Most Affordable Housing Markets, According to RealtyHop
1. Wichita, Kansas
Wichita replaced Fort Wayne and became the most affordable city in the country in September. The median value of residential homes for sale fell from $160,000 in August at $152,500 this month. With a 30 year fixed rate mortgage of 5.5%, a local Wichita family should reserve the 17.2% of your annual income to buy a house.
two. Fort Wayne, Indiana
Fort Wayne slipped one spot and became the second most affordable US real estate market. Median listing value increased for the second month, from $ 160,000 to $ 165 ,000 this September. This means that a typical family in Fort Wayne would need to spend the 19.3 % of your annual income in home ownership costs.
3. Detroit, Michigan
Detroit ranks third in the most affordable US real estate market. The average sale price remains stable at $ 96,999 this September. Average Detroit families looking to own a home should expect to spend the 19.03% of your annual income to mortgage payments and property taxes. The homeownership burden remains unchanged from the previous month.
4 . Lubbock, Texas
Lubbock remains the fourth most affordable US city this September. Real estate values increased slightly to a median of $175,000. Based on a 5.5% mortgage interest rate on a 30 year fixed-rate loan , prospective buyers in Lubbock should be prepared to spend $1,058 per month on mortgage payments and taxes. This translates to 22% of the average family income.
5. Cleveland, Ohio
Cleveland closed out the index this month as the fifth most affordable housing market in the country. Median home value rose to $115,000 this September. An average Cleveland family can expect to allocate the 22.96 % of your annual income to property costs. The load of the home ownership is 2.22% higher than that of August .
According to RealtyHop, the 63% of the cities in The index experienced declines in asking prices, including Miami, Los Angeles, New York, Boston, Austin and Sacramento, signaling the beginning of a housing recession accompanied by a decline in home sales and starts.
With an overheated housing market, rates interest rates above 5% and the highest inflation since 1981, buyers are struggling to find homes within their budget. As more and more potential buyers pause buying, sellers are being forced to lower their expectations and adjust to a market that is finally cooling off after two record years.
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– Which are the districts and neighborhoods with the greatest falls in housing prices in New York in August
1. Wichita, Kansas
Wichita replaced Fort Wayne and became the most affordable city in the country in September. The median value of residential homes for sale fell from $160,000 in August at $152,500 this month. With a 30 year fixed rate mortgage of 5.5%, a local Wichita family should reserve the 17.2% of your annual income to buy a house.
two. Fort Wayne, Indiana
Fort Wayne slipped one spot and became the second most affordable US real estate market. Median listing value increased for the second month, from $ 160,000 to $ 165 ,000 this September. This means that a typical family in Fort Wayne would need to spend the 19.3 % of your annual income in home ownership costs.
3. Detroit, Michigan
Detroit ranks third in the most affordable US real estate market. The average sale price remains stable at $ 96,999 this September. Average Detroit families looking to own a home should expect to spend the 19.03% of your annual income to mortgage payments and property taxes. The homeownership burden remains unchanged from the previous month.
4 . Lubbock, Texas
Lubbock remains the fourth most affordable US city this September. Real estate values increased slightly to a median of $175,000. Based on a 5.5% mortgage interest rate on a 30 year fixed-rate loan , prospective buyers in Lubbock should be prepared to spend $1,058 per month on mortgage payments and taxes. This translates to 22% of the average family income.
5. Cleveland, Ohio
Cleveland closed out the index this month as the fifth most affordable housing market in the country. Median home value rose to $115,000 this September. An average Cleveland family can expect to allocate the 22.96 % of your annual income to property costs. The load of the home ownership is 2.22% higher than that of August .
According to RealtyHop, the 63% of the cities in The index experienced declines in asking prices, including Miami, Los Angeles, New York, Boston, Austin and Sacramento, signaling the beginning of a housing recession accompanied by a decline in home sales and starts.
With an overheated housing market, rates interest rates above 5% and the highest inflation since 1981, buyers are struggling to find homes within their budget. As more and more potential buyers pause buying, sellers are being forced to lower their expectations and adjust to a market that is finally cooling off after two record years.
Also You may be interested in:
– Bank of America launches mortgage with no down payment or closing costs to support Latino and African-American communities in buying a home
– Which are the districts and neighborhoods with the greatest falls in housing prices in New York in August