Housing Affordability Falls as Prices Rise

Washington, DC, Aug. 14, 2013 -- Nationwide housing affordability fell in the second quarter as recovering markets witnessed significant firming of home prices, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.
 
In all, 69.3 percent of new and existing homes sold between the beginning of April and end of June were affordable to families earning the U.S. median income of $64,400. This is down from the 73.7 percent of homes sold that were affordable to median-income earners in the first quarter, and the first time that the measure has fallen below 70 percent since late 2008.
 
“Housing affordability has been hovering near historic highs for the past several years, largely due to exceptionally favorable mortgage rates and low prices during the recession,” said NAHB Chairman Rick Judson.

“Now that markets across the country are recovering, home values are strengthening at the same time that the cost of building homes is rising due to tightened supplies of building materials, developable lots and labor.”    
 
“Rising home prices signal the improving health in housing markets, and the median price of all new and existing U.S. homes sold in this year’s second quarter, at $202,000, was well ahead of the second quarter 2012 median price of $185,000,” observed NAHB Chief Economist David Crowe.

“Together with rising mortgage rates, this contributed to affordability slipping to the lowest level in more than four years. Such movement would be less concerning were it not for ongoing discussions regarding potential changes to the mortgage interest deduction and federal support for the secondary mortgage market, both of which play enormous roles in keeping homeownership affordable.”



Other Archived Articles

Home Builder Sentiment Ticks Down in January   Full Article
Washington, DC, Jan. 20, 2015 -- U.S. homebuilder sentiment edged lower in January but remained well in positive territory, according to the National Association of Home Builders.

Remodeling Market Index Hits Record Level   Full Article
Washington, DC, Jan. 20, 2015 -- The National Association of Home Builders’ Remodeling Market Index posted a record-high result of 60 in the final quarter of 2014.

Fuse Alliance Names Gordon Executive Director   Full Article
Laguna Niguel, CA, Jan. 20, 2015 -- Fuse Alliance, a member-owned organization of professional, commercial flooring contractors, said it has named Geoff Gordon as executive director.

RAK Ceramics Selling Stake in RAK Laticrete   Full Article
United Arab Emirates, Jan. 20, 2015 -- RAK Ceramics plans to sell its stake in RAK Laticrete as part of the company’s strategy to focus on core assets, the firm said.

Julius 'Bud' Shaw, Founder of Shaw Industries, Dies   Full Article
Cartersville, GA, Jan. 20, 2015 -- Julius Clarence "Bud" Shaw, age 85, founder of Shaw Industries, died Jan. 16.

TISE East Changes Location, Dates   Full Article
Dallas, TX, Jan. 20, 2015 -- Informa Exhibitions said that the second annual International Surface Event East 2015 dates have shifted to Nov. 2-5 and the location is moving to Orlando, Florida at the Orange County Convention Center.

Shaw Introduces New Carpet Backing, Protection System   Full Article
Dalton, GA, Jan. 19, 2015 -- Shaw Floors said it is introducing LifeGuard, a new carpet protection system that covers the entire product, from face fiber to backing.

Valinge, System SpA Form Printer Partnership   Full Article
Viken, Sweden, Jan. 19, 2015 -- Välinge Innovation and System SpA have entered into a strategic partnership to supply the flooring and building panel industry with industrial single-pass printers .

Surfaces Show Featuring Booth Crawl Challenge   Full Article
Dallas, TX, Jan. 19, 2015 -- This week's Surfaces show will feature a Booth Crawl Challenge, a new show promotion.

Ceramics of Italy Contest Deadline Extended   Full Article
Bologna, Italy, Jan. 19, 2015 -- The submission deadline for the 2015 Ceramics of Italy Tile Competition has been extended to Jan. 23.

Polley To Be Inducted into WFCA Hall of Fame   Full Article
Anaheim, CA, Jan. 19, 2015 -- David Polley is the newest inductee to the World Floor Covering Association Hall of Fame.

HPS Schönox To Name Contest Winners on Thursday   Full Article
Las Vegas, NV, Jan. 16, 2015 -- HPS Schönox will present the winner of its Schönox Worst Subfloor in North America Contest at Surfaces next Thursday at 11 a.m..

Shnier To Distribute Metroflor's Aspecta in Canada   Full Article
Norwalk, CT, Jan. 16, 2015 -- Metroflor Corp. said it has formed a partnership with Shnier, a leading Canadian floor covering company, to distribute its commercial Aspecta LVT.

Dealer Discovers Rug Owned by FDR   Full Article
New York, NY, Jan. 16, 2015 -- John Ahdoot of Ahdoot Oriental Rugs recently discovered a rug in a New Jersey couple’s home that once belonged to Franklin Delano Roosevelt.

Consumer Sentiment at 11-Year High   Full Article
Ann Arbor, MI, Jan. 16-2015 -- Consumer sentiment in January surged to the highest level in 11 years, according to the preliminary reading of the University of Michigan/Thomson Reuters consumer sentiment index.

Consumer Prices Fall Most in Six Years   Full Article
Washington, DC, Jan. 16, 2015 -- U.S. consumer prices fell 0.4% in December, the largest drop since the end of 2008, according to the Labor Department.

Pharr Yarns Invests in New Space Dye Technology   Full Article
McAdenville, NC, Janu. 15, 2015 -- Pharr Yarns said it has invested in space dye technology for its McAdenville facility to handle the growing demand for sophisticated design.

Engineered Floors Using Dye, Stain Technologies in Soft Nylon   Full Article
Dalton, Ga., Jan. 16, 2015 – Dream Weaver Carpet and Engineered Floors say they are using technology they developed for coloring polyester fiber and applying it to soft nylon.

IVC Deal a Good Sales Opportunity for Mohawk   Full Article
New York, NY, Jan. 15, 2015 -- Stifel Nicolaus still has a "buy" rating on shares of Mohawk Industries following Mohawk's announced acquisition of vinyl firm IVC for $1.2 billion.

Producer Prices Decline in December   Full Article
Washington, DC, Jan. 15, 2015 –- Producer prices fell by 0.3% in December, according to the Commerce Department.