Median home prices of single-family homes and condos during the second quarter of 2020 were more affordable than historical averages in 49 percent of U.S. counties, according to a report from ATTOM Data Solutions.
ATTOM’s 2020 U.S. Home Affordability Report said median home prices of single-family homes and condos during the second quarter of 2019 were more affordable than historical averages in 31 percent of U.S. counties.
ATTOM attributed the gains in affordability to higher wages and cheaper mortgage costs resulting from declining interest rates, which outweighed ongoing price increases that commonly exceeded 5 percent in the second quarter.
However, the report found major costs on median-priced homes remained unaffordable to average wage earners in 74 percent of counties included in its second-quarter analysis.
“The latest affordability numbers reveal a win-win situation for sellers as well as buyers. Prices are rising again around the country during the current homebuying season, despite worries that the economic impact of the coronavirus pandemic would halt the nine-year runup in home values,” ATTOM Chief Product Officer Todd Teta said in a release. “But a combination of wage gains and declining mortgage 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,” Teta said. “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.”
According to the report, the biggest year-over-year price gains in the second quarter were in Philadelphia County, Pa. (up 22 percent); Bronx County, N.Y. (up 13 percent); Mecklenburg County (Charlotte), N.C. (up 12 percent); Dallas County, Texas (up 11 percent) and Orange County (Orlando), Fla. (up 10 percent).
The report found home price appreciation outpaced average weekly wage growth in the second quarter in 269 of the 406 counties analyzed in the report (66 percent).
The counties that required the greatest percentage of wages to buy a home in the second quarter were Marin County, Calif. (109.4 percent); Santa Cruz County, Calif. (98.4 percent); Kings County (Brooklyn), N.Y. (98.3 percent); Maui County, Hawaii (84.1 percent); and Monterey County, Calif. (82.7 percent).
ATTOM said 32 percent of counties analyzed required less than 30 percent of annualized weekly wages to buy a home in the second quarter, including Macon County (Decatur), Ill. (10.4 percent); Rock Island County (Davenport), Iowa (13.4 percent); Montgomery County, Ala. (15.1 percent); Oswego County N.Y. (17.9 percent); and Richmond County, Ga. (18.1 percent).