Median home prices stayed moreaffordable than historic averages in the second quarter of 2020,according to a new ATTOM data solutions report.
The study found that 49% ofsingle-family homes and condos in counties with enough data toanalyze were more affordable than the historic average. This is upfrom 31% a year ago. ATTOM determinedaffordability by calculating the income needed to make monthlypayments on a medium-priced home, accounting fora 3 percent downpayment and a 28 percent maximum "front-end" debt-to-incomeratio.
"The latest affordability numbersreveal a win-win situation for sellers as well as buyers," saidTodd Teta, ATTOM's chief product officer. "Prices are rising againaround the country during the current home-buying season, despiteworries that the economic impact of the Coronavirus pandemic wouldhalt the nine-year run up in home values. But a combination of wagegains and declining mortgage rates are helping to override theincreases and make homes more affordable in large swathsof the United States."
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Samantha Stokes
Samantha Stokes, based in New York, is a staff reporter at American Lawyer covering the business of law. You can reach her at [email protected] or on Twitter: @stokessamanthaj.
