Realtor.com research shows rising affordability despite higher prices
There has been an increase in affordability with 74 of the 100 largest US metros now more affordable than a year ago.
Realtor.com has released two reports this week – the May 2019 monthly housing trend report and Realtors and realtor.com Affordability Distribution Curve and Score Report - showing that, even as house prices continue to rise albeit at a slower rate, affordability has been boosted by lower mortgage rates, rising inventory of available homes, and increasing wages.
Despite the slowest pace of growth (6% year-over-year) since April 2015, the US median listing price reached a new record high of $315,000.
But with that rise being offset by other factors, why has greater affordability not meant a spike in sales?
"The boost in affordability has yet to translate into more home sales perhaps because--while the shift in trend is welcome, the current monthly savings are small and some buyers may be waiting for markets to tip further in their favor," said Danielle Hale, realtor.com® 's chief economist.
There is also the issue of the types of homes that are available compared to those who are ready to buy.
"Despite the encouraging trends, entry-level buyers will likely continue to struggle to find homes in their price range as the majority of the inventory gains continue to be in mid-to upper-tier homes in more expensive markets,” added Hale.
In April, the number of homes priced above $750,000 -- more than double the national median -- increased 11% year-over-year, while the number homes priced below $200,000 decreased by 8% year-over-year.
Metros with the greatest increases in affordability
|
Metro |
April Affordability |
YoY Affordability |
May Median Listing |
May Median Days |
|
San Jose-Sunnyvale et al, Calif. |
0.5 |
0.11 |
$1,167,444 |
28 |
|
Des Moines-West Des Moines, Iowa |
0.94 |
0.11 |
$288,000 |
59 |
|
San Francisco-Oakland et al, Calif. |
0.54 |
0.09 |
$954,500 |
28 |
|
Lakeland-Winter Haven, Fla. |
0.82 |
0.08 |
$231,500 |
64 |
|
Atlanta-Sandy Springs et al, Ga. |
0.8 |
0.07 |
$335,000 |
47 |
|
Portland-Vancouver et al, Ore.-Wash. |
0.59 |
0.07 |
$474,975 |
34 |
|
Cape Coral-Fort Myers, Fla. |
0.69 |
0.07 |
$299,900 |
91 |
|
Austin-Round Rock, Texas |
0.7 |
0.07 |
$369,995 |
46 |
|
Dallas-Fort Worth-Arlington, Texas |
0.68 |
0.06 |
$350,000 |
43 |
|
Charlotte-Concord et al, N.C.-S.C. |
0.75 |
0.06 |
$329,450 |
49 |
|
Bridgeport-Stamford-Norwalk, Conn. |
0.56 |
0.06 |
$754,500 |
60 |
|
Raleigh, N.C. |
0.87 |
0.06 |
$349,950 |
45 |
|
Orlando-Kissimmee-Sanford, Fla. |
0.69 |
0.06 |
$315,000 |
57 |
|
Madison, Wis. |
0.86 |
0.06 |
$339,500 |
40 |
|
Jackson, Miss. |
0.86 |
0.06 |
$259,000 |
71 |
|
Tampa-St. Petersburg et al, Fla. |
0.77 |
0.05 |
$279,950 |
58 |
|
Palm Bay-Melbourne et al, Fla. |
0.79 |
0.05 |
$270,018 |
61 |
|
Jacksonville, Fla. |
0.74 |
0.05 |
$315,000 |
60 |
|
Indianapolis-Carmel-Anderson, Ind. |
0.91 |
0.05 |
$279,900 |
45 |
|
Grand Rapids-Wyoming, Mich. |
0.8 |
0.05 |
$289,900 |
31 |
|
Denver-Aurora-Lakewood, Colo. |
0.68 |
0.05 |
$511,950 |
29 |
|
Colorado Springs, Colo. |
0.62 |
0.05 |
$379,900 |
30 |
|
Augusta-Richmond County, Ga.-S.C. |
0.9 |
0.05 |
$223,225 |
60 |
|
Salt Lake City, Utah |
0.7 |
0.05 |
$436,250 |
31 |
|
Phoenix-Mesa-Scottsdale, Ariz. |
0.7 |
0.05 |
$350,000 |
46 |
|
Nashville-Davidson et al, Tenn. |
0.72 |
0.05 |
$355,495 |
37 |
|
Washington et al, D.C.-Va.-Md.-W.V. |
0.87 |
0.04 |
$462,250 |
34 |
|
Stockton-Lodi, Calif. |
0.62 |
0.04 |
$425,475 |
35 |
|
St. Louis, Mo.-Ill. |
1.08 |
0.04 |
$229,188 |
52 |
|
Riverside et al, Calif. |
0.62 |
0.04 |
$410,450 |
50 |
|
New Haven-Milford, Conn. |
0.9 |
0.04 |
$279,900 |
50 |
|
Minneapolis et al, Minn.-Wis. |
0.81 |
0.04 |
$360,000 |
34 |
|
Miami-Fort Lauderdale et al, Fla. |
0.62 |
0.04 |
$399,000 |
88 |
|
Deltona-Daytona Beach et al, Fla. |
0.62 |
0.04 |
$294,500 |
73 |
|
Allentown-Bethlehem et al, Pa.-N.J. |
1 |
0.04 |
$222,450 |
54 |
|
Los Angeles-Long Beach et al, Calif. |
0.37 |
0.04 |
$769,500 |
42 |
|
Springfield, Mass. |
0.83 |
0.04 |
$279,000 |
37 |
|
Greenville-Anderson-Mauldin, S.C. |
0.84 |
0.04 |
$269,000 |
50 |
|
Detroit-Warren-Dearborn, Mich. |
0.97 |
0.04 |
$258,250 |
36 |
|
San Diego-Carlsbad, Calif. |
0.39 |
0.03 |
$699,925 |
31 |
|
North Port-Sarasota et al, Fla. |
0.66 |
0.03 |
$359,900 |
86 |
|
Harrisburg-Carlisle, Pa. |
1.07 |
0.03 |
$219,900 |
45 |
|
Boise City, Idaho |
0.64 |
0.03 |
$369,900 |
30 |
|
Sacramento--Roseville et al, Calif. |
0.57 |
0.03 |
$493,725 |
35 |
|
Portland-South Portland, Maine |
0.7 |
0.03 |
$379,450 |
47 |
|
Baltimore-Columbia-Towson, Md. |
0.96 |
0.03 |
$334,500 |
43 |
|
Tucson, Ariz. |
0.67 |
0.02 |
$298,250 |
52 |
|
San Antonio-New Braunfels, Texas |
0.68 |
0.02 |
$295,000 |
49 |
|
New York-Newark et al, N.Y.-N.J.-Pa. |
0.54 |
0.02 |
$564,500 |
52 |
|
Little Rock et al, Ark. |
1.03 |
0.02 |
$194,900 |
53 |
|
Las Vegas-Henderson-Paradise, Nev. |
0.72 |
0.02 |
$319,900 |
43 |
|
Knoxville, Tenn. |
0.77 |
0.02 |
$289,900 |
56 |
|
Hartford-West Hartford et al, Conn. |
0.98 |
0.02 |
$279,900 |
46 |
|
Fresno, Calif. |
0.66 |
0.02 |
$322,500 |
42 |
|
Durham-Chapel Hill, N.C. |
0.68 |
0.02 |
$361,250 |
43 |
|
Columbia, S.C. |
0.98 |
0.02 |
$235,000 |
53 |
|
Chicago et al, Ill.-Ind.-Wis. |
0.86 |
0.02 |
$311,386 |
42 |
|
Albuquerque, N.M. |
0.81 |
0.02 |
$269,995 |
46 |
|
Spokane-Spokane Valley, Wash. |
0.69 |
0.02 |
$329,995 |
31 |
|
Richmond, Va. |
0.83 |
0.02 |
$332,053 |
46 |
|
Wichita, Kan. |
0.96 |
0.01 |
$212,450 |
44 |
|
Virginia Beach et al, V.a-N.C. |
0.85 |
0.01 |
$301,000 |
45 |
|
Urban Honolulu, Hawaii |
0.52 |
0.01 |
$694,900 |
56 |
|
Seattle-Tacoma-Bellevue, Wash. |
0.51 |
0.01 |
$627,500 |
30 |
|
Providence-Warwick, R.I.-Mass. |
0.64 |
0.01 |
$369,900 |
44 |
|
Pittsburgh, Pa. |
1.05 |
0.01 |
$197,250 |
59 |
|
Oxnard-Thousand Oaks-Ventura, Calif. |
0.43 |
0.01 |
$689,475 |
40 |
|
Memphis, Tenn.-Miss.-Ark. |
1.01 |
0.01 |
$223,500 |
44 |
|
Columbus, Ohio |
0.95 |
0.01 |
$264,900 |
35 |
|
Cincinnati, Ohio-Ky.-Ind. |
0.89 |
0.01 |
$289,900 |
43 |
|
Buffalo-Cheektowaga et al, N.Y. |
0.92 |
0.01 |
$220,000 |
36 |
|
Boston-Cambridge-Newton, Mass.-N.H. |
0.62 |
0.01 |
$594,250 |
30 |
|
Albany-Schenectady-Troy, N.Y. |
0.84 |
0.01 |
$299,900 |
64 |
|
Charleston-North Charleston, S.C. |
0.69 |
0.01 |
$427,450 |
67 |
|
Worcester, Mass.-Conn. |
0.85 |
0 |
$349,000 |
36 |
|
Toledo, Ohio |
1.13 |
0 |
$166,950 |
43 |
|
Omaha-Council Bluffs, Neb.-Iowa |
0.81 |
0 |
$297,630 |
29 |
|
Milwaukee-Waukesha et al, Wis. |
0.86 |
0 |
$279,900 |
36 |
|
Houston-The Woodlands et al, Texas |
0.7 |
0 |
$324,945 |
51 |
|
Cleveland-Elyria, Ohio |
1.03 |
0 |
$190,606 |
49 |
|
McAllen-Edinburg-Mission, Texas |
0.68 |
-0.01 |
$196,000 |
83 |
|
Baton Rouge, La. |
0.93 |
-0.01 |
$249,900 |
70 |
|
Youngstown-Warren et al, Ohio-Pa. |
1.21 |
-0.01 |
$124,900 |
64 |
|
Dayton, Ohio |
1.15 |
-0.01 |
$157,745 |
38 |
|
Akron, Ohio |
1.11 |
-0.02 |
$174,900 |
40 |
|
Philadelphia et al, Pa.-N.J.-Del.-Md. |
0.92 |
-0.02 |
$288,950 |
46 |
|
Winston-Salem, N.C. |
0.85 |
-0.02 |
$245,000 |
45 |
|
Scranton--Wilkes-Barre et al, Pa. |
1.06 |
-0.02 |
$162,400 |
67 |
|
Oklahoma City, Okla. |
0.87 |
-0.02 |
$256,500 |
43 |
|
New Orleans-Metairie, La. |
0.74 |
-0.02 |
$292,500 |
60 |
|
Louisville et al, Ky.-Ind. |
0.91 |
-0.02 |
$277,450 |
43 |
|
Greensboro-High Point, N.C. |
0.85 |
-0.02 |
$245,900 |
45 |
|
Chattanooga, Tenn.-Ga. |
0.77 |
-0.03 |
$289,700 |
51 |
|
Birmingham-Hoover, Ala. |
0.96 |
-0.03 |
$249,000 |
50 |
|
Rochester, N.Y. |
0.93 |
-0.04 |
$222,450 |
31 |
|
Bakersfield, Calif. |
0.79 |
-0.04 |
$260,000 |
43 |
|
Syracuse, N.Y. |
1.04 |
-0.04 |
$184,950 |
51 |
|
Kansas City, Mo.-Kan. |
0.88 |
-0.04 |
$302,500 |
40 |
|
Tulsa, Okla. |
0.89 |
-0.07 |
$239,500 |
50 |
|
El Paso, Texas |
0.79 |
-0.09 |
$191,475 |
68 |
