Housing affordability in the US fell in the last three months of 2017 to its lowest level since the third quarter of 2016, the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index reveals.
However, despite the challenges of increased home prices amid regulatory restraints and rising construction costs, builders remain optimistic that buyers will still find homes affordable.
“Affordability remains positive nationwide even as demand is outstripping supply in many markets,” said NAHB Chief Economist Robert Dietz. “Though mortgage rates are rising, incomes should rise faster as well, helping to keep home prices affordable.”
In all, 59.9 percent of new and existing homes sold between the beginning of October and end of December were affordable to families earning the U.S. median income of $65,700, down from 61.4 per cent in the previous quarter.
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