Housing affordability falls to 10-year low in Palm Beach County, nation
According to the national trend of rebounding home prices and rising mortgage rates, Palm Beach County saw housing affordability fall to a 10-year low in the second quarter of 2018.
Just 54.9 percent of homes sold in Palm Beach County in the second quarter were affordable to a median-income family. That's the lowest affordability reading since 2008. (based on a median home price of $260,000 and a median income of $71,800).
This information is based on the National Association of Home Builders/Wells Fargo Housing Opportunity Index and most current article by Jeff Ostrowski, Palm Beach Post Staff Writer.
Henry Kaplan, sales manager at Century 21 Tenace Realty in Boynton Beach, said affordability has become an increasing issue for buyers in Palm Beach County and we have to have the right combination of income, credit and down payment. The housing market has been slowed in part because move-up buyers need to sell their homes before they can afford to buy another place and because people don't want to list until they know where they're going." Kaplan said.
The national median home price jumped from $252,000 in the first quarter of 2018 to $265,000 in the second quarter—the highest quarterly median price on record. At the same time, average mortgage rates rose from 4.34% to 4.67%.