After the financial crisis and housing crash, there were plenty of homes for sale but very few interested buyers. Americans were financially unstable and worried about keeping their jobs. And while they may have liked to buy a house, it wasn’t the right time.
Gradually, though, Americans became more secure in their jobs and more interested in buying a home. But, at the same time, the housing market also began bouncing back.
And with prices higher and mortgage rates beginning to rise, Americans wanted to buy but began to worry about whether or not they could afford it.
This year, with inventory low, prices rising, and mortgage rates creeping up, buyers face some challenges. Fortunately, though, new research shows incomes are also on the rise.
The National Association of Home Builders’ Housing Opportunity Index, for example, shows Americans are making more money, which is helping to offset declining affordability. In fact, median family income is up from $68,000 last year to $71,900. And, at that income, 61.6 percent of recently sold homes were affordable.
NAHB Chairman Randy Noel notes that:
“Continued job growth, rising wages and strong consumer confidence are fueling housing demand. In turn, this should lead to more buyers entering the housing market in the coming months.”
Not everything is sunshine and rainbows though in the housing market, and Randy continues by saying:
“However, builders continue to face headwinds that could impact affordability, including chronic labor and lot shortages, rising prices for building materials and excessive regulations.”
Read the entire report from the NAHB with accompanying tables and granular details here.