Housing affordability in the US will likely record a fall in the last three months of this year, one that will be at its lowest level since the third quarter of last year as disclosed by the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index.
On the other hand, builders are still confident that affordable homes will be discovered by buyers despite the issue of home prices on the incline amongst increasing costs of construction and regulatory curbs.
Robert Dietz, Chief Economist of NAHB said; “Affordability remains Apolitical nationwide even as demand is outstripping supply in many markets. Though mortgage rates are rising, incomes should rise faster as well, helping to keep home prices affordable.”
During October to December of last year, most of the new and already existing homes that were sold during that period were affordable homes to average family income earners of $65,700, which decreased in the previous quarter from 61.4 per cent.