Record home prices can’t hide a surprising affordability gain
Regional results underscored that unevenness. The well-supplied West led all four regions with an 8.9% year-over-year affordability gain, followed by the South at 8.3% and the inventory-constrained Midwest at 6.2%.
The Northeast was the exception, where home prices rose 3.9% against regional wage growth of just 3.2%, producing the smallest improvement nationally.
For brokers qualifying buyers on single-family homes, NAR’s methodology, based on a $446,400 median at a 6.57% rate, put the income required to qualify at $109,152 in June.
Read more: Home price growth to fall behind inflation, Realtor.com forecast shows
A new housing law enters the picture
The 21st Century ROAD to Housing Act automatically became law on July 11, after clearing the Senate 85-5 and the House 358-32, adding a legislative variable to the long-term affordability equation.
