Housing Affordability Rose in Q1
According to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI), lower home prices, declining mortgage rates and solid income gains contributed to a rise in housing affordability in Q1 of 2019. The report says that 61.4% of new and existing homes sold between the first of January to end of March were affordable to families earning the U.S. median income of $75,500. This figure is up nearly 5% from Q4, 2018. In addition, during the first quarter the national median home price dropped $2,500 from the previous quarter while average mortgage rates fell by 25 basis points.
“Housing affordability is going to remain a challenge throughout 2019, as builders continue to face rising construction and development costs.”