Rising Home Prices May Decrease Housing Affordability

According to John Burns Real Estate Consulting, mortgage payments for median households passed historical averages in some major housing markets. As housing prices jump, affordability decreases. Though, affordability rates still remain higher than in years past. In 2013’s second quarter, 69% of new homes and existing homes sold at affordable prices for families or individuals who earn median incomes, compared to only 41% in 2008. Low interest rates continue to aid housing affordability, but the rise in prices may affect affordability in the coming months or years. More here

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