Increasing Prices Amid Record Affordability
Prices are rising but homeownership is still historically affordable. The recently released NAR Metropolitan Median Area Prices and Affordability Report on the fourth quarter of 2012 showed a growing number of metro areas with higher median home prices. The median existing single-family home price rose in 133 out of 152 metropolitan statistical areas compared with the same quarter in 2011, where only 29 metros were up. The national median price showed the strongest year-over-year increase in seven years – from $162,600 in in the fourth quarter of 2011, to $178,900.
Despite these impressive increases, owning a home is still more affordable than ever. NAR’s annual Housing Affordability Index rose to a record 193.5 in 2012, up from 186.4 in 2011.
How Long Will It Last? Affordability is expected to remain favorable in 2013. Talk to a Realtor® about affordability conditions in their area. How do they compare with previous years? Talk to home buyers to learn how important affordability conditions were in their decision to get into the market.