ATTOM Data Solutions, curator of the nation’s premier property database, today released its Q2 2018 U.S. Home Affordability Report, which shows that the U.S. home prices in the first quarter were at the least affordable level since Q3 2008.
And the news doesn’t bode well for potential Arizona homeowners. The reports shows median home prices are not affordable for average wage earners in 75 percent of local markets. Counties where an average wage earner could not afford to buy a median-priced home in Q2 2018 included Los Angeles County, California; Cook County (Chicago), Illinois; Maricopa County (Phoenix), Arizona; San Diego County, California; and Orange County, California.
“Home affordability is likely to continue decreasing, albeit slowly, over the next few quarters, because mortgage interest rates are rising and homes are appreciating. Supply is lower than demand presently. I anticipate wage growth countering rising rates and home prices, to an extent, over the next 12 to 24 months, though. Employers, facing a tight labor market today and tighter tomorrow- unemployment excepted to fall into the mid-3% by late 2019- are likely to boost pay for workers.”