NAR: Housing Prices Rise; Affordability Lags

WASHINGTON, DC-Median single-family home prices, including for-sale apartments, rose year-over-year for the fourth quarter of 2013 in 119 of the 164 metro areas charted by the National Association of Realtors. However, NAR notes that its latest quarterly report, released Tuesday, should be balanced against a companion report showing Y-O-Y affordability.

“The vast majority of homeowners have seen significant gains in equity over the past two years, which is helping the economy through increased consumer spending,” says Lawrence Yun, NAR’s chief economist. “At the same time, home prices have been rising faster than incomes, while mortgage interest rates are above the record lows of a year ago. This is beginning to hamper housing affordability.”