Home prices continued their upward climb during the second quarter of 2018, dropping affordability levels to their lowest point in nearly a decade. According to ATTOM Data Solutions, which released its Q2 2018 U.S. Home Affordability Report last week, which shows the median home price nationwide is up 4.7 percent from a year ago.
The report calculates an affordability index based on the percentage of income needed to buy a median-priced home relative to historic averages. The index fell to 95 from 103 during the same quarter last year – the lowest level recorded since 2008 when the index was 86.
Annual growth in home prices outpaced average wage growth in 275 counties, including San Diego. Locally, the affordability index currently sits at 91 with median home prices at $562,500. Wage growth in San Diego is only 2.8 percent for the year, compared to median price growth of 6.1 percent.
Today, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.