SANTA CLARA, Calif.,
June 6, 2019 /PRNewswire/ -- Nearly
three-quarters of the 100 largest U.S. metros -- including some of
the priciest like San Jose,
Calif., and San Francisco
-- are more affordable than this time last year, despite a
continued upward swing in median home prices, according to two new
research reports released today by realtor.com®.
The trends are based on realtor.com® 's May 2019 monthly housing trend report and
REALTORS and realtor.com Affordability Distribution Curve and Score
Report, which showed increasing inventory, rising wages, and
declining mortgage rates have offset slowing price increases in
some local areas, making a larger share of homes affordable to
buyers -- especially in the mid-to upper-tier price range.
Realtor.com® May data shows the U.S. median listing
price continued its upward hike, increasing 6 percent
year-over-year to $315,000 -- a new
record high. However, the 6 percent year-over-year increase in the
median listing price was the slowest pace of growth since
April 2015. National inventory grew
by 3 percent, and homes typically spent 53 days on the market-- one
day less than last May.
The most dramatic change in the U.S. housing market landscape is
affordability, which realtor.com® defines as the share
of for-sale homes a buyer is able to afford in their market at
their income. Driven by inventory growth and lower mortgage rates,
74 out of the nation's 100 largest metros became more affordable in
April 2019 compared to the previous
year. This trend is a rapid acceleration from last month when only
44 metros were more affordable than the previous year.
"Lower mortgage rates, higher wages and more homes for sale have
helped counteract rising home prices, and ultimately, made it so
that buyers are able to afford more than last year," said
Danielle Hale,
realtor.com® 's chief economist. "However, the boost in
affordability has yet to translate into more home sales perhaps
because--while the shift in trend is welcome, the current monthly
savings are small and some buyers may be waiting for markets to tip
further in their favor."
Compared to national trends, the 10 markets with the greatest
increases in affordability were San Jose,
Calif.; Des Moines, Iowa;
San Francisco; Lakeland, Fla.; Atlanta; Portland,
Ore.; Cape Coral, Fla.;
Austin, Texas; and Dallas. These markets are distinguished by
rising incomes, decreasing listing prices, and a significant
increase in available homes for sale. On average, incomes grew an
estimated 6 percent year-over-year, compared to the 3.5 percent
increase the top 100 largest metros saw. At the same time, median
home listing prices fell an average of 2 percent, and inventory
increased an average of 26 percent. This compared to 4.4 percent
price and 6.5 percent inventory growth in the top 100 metros.
Hale added, "Despite the encouraging trends, entry-level buyers
will likely continue to struggle to find homes in their price range
as the majority of the inventory gains continue to be in mid-to
upper-tier homes in more expensive markets."
In April, the number of homes priced above $750,000 -- more than double the national median
-- increased 11 percent year-over-year, while the number homes
priced below $200,000 decreased by 8
percent year-over-year. Similarly, increases in affordability are
predominantly focused in pricier markets, especially along the West
Coast. For example, San Jose, one
of the nation's most expensive metros, saw the greatest boost in
affordability, but it was principally driven by improvements for
80th and 90th percentile income earners. Meaning, San Jose became more affordable compared to
this time last year, but the majority of affordability increases
were only felt by the area's top income earners.
For more information, please visit:
https://www.realtor.com/research/may-2019-data
Metros With Greatest Increases in Affordability
Metro
|
April
Affordability
Score
|
YoY
Affordability
Score
|
May Median
Listing
Price
|
May Median
Days
on Market
|
San Jose-Sunnyvale et
al, Calif.
|
0.5
|
0.11
|
$1,167,444
|
28
|
Des Moines-West Des
Moines, Iowa
|
0.94
|
0.11
|
$288,000
|
59
|
San Francisco-Oakland
et al, Calif.
|
0.54
|
0.09
|
$954,500
|
28
|
Lakeland-Winter
Haven, Fla.
|
0.82
|
0.08
|
$231,500
|
64
|
Atlanta-Sandy Springs
et al, Ga.
|
0.8
|
0.07
|
$335,000
|
47
|
Portland-Vancouver et
al, Ore.-Wash.
|
0.59
|
0.07
|
$474,975
|
34
|
Cape Coral-Fort
Myers, Fla.
|
0.69
|
0.07
|
$299,900
|
91
|
Austin-Round Rock,
Texas
|
0.7
|
0.07
|
$369,995
|
46
|
Dallas-Fort
Worth-Arlington, Texas
|
0.68
|
0.06
|
$350,000
|
43
|
Charlotte-Concord et
al, N.C.-S.C.
|
0.75
|
0.06
|
$329,450
|
49
|
Bridgeport-Stamford-Norwalk, Conn.
|
0.56
|
0.06
|
$754,500
|
60
|
Raleigh,
N.C.
|
0.87
|
0.06
|
$349,950
|
45
|
Orlando-Kissimmee-Sanford, Fla.
|
0.69
|
0.06
|
$315,000
|
57
|
Madison,
Wis.
|
0.86
|
0.06
|
$339,500
|
40
|
Jackson,
Miss.
|
0.86
|
0.06
|
$259,000
|
71
|
Tampa-St. Petersburg
et al, Fla.
|
0.77
|
0.05
|
$279,950
|
58
|
Palm Bay-Melbourne et
al, Fla.
|
0.79
|
0.05
|
$270,018
|
61
|
Jacksonville,
Fla.
|
0.74
|
0.05
|
$315,000
|
60
|
Indianapolis-Carmel-Anderson, Ind.
|
0.91
|
0.05
|
$279,900
|
45
|
Grand Rapids-Wyoming,
Mich.
|
0.8
|
0.05
|
$289,900
|
31
|
Denver-Aurora-Lakewood, Colo.
|
0.68
|
0.05
|
$511,950
|
29
|
Colorado Springs,
Colo.
|
0.62
|
0.05
|
$379,900
|
30
|
Augusta-Richmond
County, Ga.-S.C.
|
0.9
|
0.05
|
$223,225
|
60
|
Salt Lake City,
Utah
|
0.7
|
0.05
|
$436,250
|
31
|
Phoenix-Mesa-Scottsdale, Ariz.
|
0.7
|
0.05
|
$350,000
|
46
|
Nashville-Davidson et
al, Tenn.
|
0.72
|
0.05
|
$355,495
|
37
|
Washington et al,
D.C.-Va.-Md.-W.V.
|
0.87
|
0.04
|
$462,250
|
34
|
Stockton-Lodi,
Calif.
|
0.62
|
0.04
|
$425,475
|
35
|
St. Louis,
Mo.-Ill.
|
1.08
|
0.04
|
$229,188
|
52
|
Riverside et al,
Calif.
|
0.62
|
0.04
|
$410,450
|
50
|
New Haven-Milford,
Conn.
|
0.9
|
0.04
|
$279,900
|
50
|
Minneapolis et al,
Minn.-Wis.
|
0.81
|
0.04
|
$360,000
|
34
|
Miami-Fort Lauderdale
et al, Fla.
|
0.62
|
0.04
|
$399,000
|
88
|
Deltona-Daytona Beach
et al, Fla.
|
0.62
|
0.04
|
$294,500
|
73
|
Allentown-Bethlehem
et al, Pa.-N.J.
|
1
|
0.04
|
$222,450
|
54
|
Los Angeles-Long
Beach et al, Calif.
|
0.37
|
0.04
|
$769,500
|
42
|
Springfield,
Mass.
|
0.83
|
0.04
|
$279,000
|
37
|
Greenville-Anderson-Mauldin, S.C.
|
0.84
|
0.04
|
$269,000
|
50
|
Detroit-Warren-Dearborn, Mich.
|
0.97
|
0.04
|
$258,250
|
36
|
San Diego-Carlsbad,
Calif.
|
0.39
|
0.03
|
$699,925
|
31
|
North Port-Sarasota
et al, Fla.
|
0.66
|
0.03
|
$359,900
|
86
|
Harrisburg-Carlisle,
Pa.
|
1.07
|
0.03
|
$219,900
|
45
|
Boise City,
Idaho
|
0.64
|
0.03
|
$369,900
|
30
|
Sacramento--Roseville
et al, Calif.
|
0.57
|
0.03
|
$493,725
|
35
|
Portland-South
Portland, Maine
|
0.7
|
0.03
|
$379,450
|
47
|
Baltimore-Columbia-Towson, Md.
|
0.96
|
0.03
|
$334,500
|
43
|
Tucson,
Ariz.
|
0.67
|
0.02
|
$298,250
|
52
|
San Antonio-New
Braunfels, Texas
|
0.68
|
0.02
|
$295,000
|
49
|
New York-Newark et
al, N.Y.-N.J.-Pa.
|
0.54
|
0.02
|
$564,500
|
52
|
Little Rock et al,
Ark.
|
1.03
|
0.02
|
$194,900
|
53
|
Las
Vegas-Henderson-Paradise, Nev.
|
0.72
|
0.02
|
$319,900
|
43
|
Knoxville,
Tenn.
|
0.77
|
0.02
|
$289,900
|
56
|
Hartford-West
Hartford et al, Conn.
|
0.98
|
0.02
|
$279,900
|
46
|
Fresno,
Calif.
|
0.66
|
0.02
|
$322,500
|
42
|
Durham-Chapel Hill,
N.C.
|
0.68
|
0.02
|
$361,250
|
43
|
Columbia,
S.C.
|
0.98
|
0.02
|
$235,000
|
53
|
Chicago et al,
Ill.-Ind.-Wis.
|
0.86
|
0.02
|
$311,386
|
42
|
Albuquerque,
N.M.
|
0.81
|
0.02
|
$269,995
|
46
|
Spokane-Spokane
Valley, Wash.
|
0.69
|
0.02
|
$329,995
|
31
|
Richmond,
Va.
|
0.83
|
0.02
|
$332,053
|
46
|
Wichita,
Kan.
|
0.96
|
0.01
|
$212,450
|
44
|
Virginia Beach et al,
V.a-N.C.
|
0.85
|
0.01
|
$301,000
|
45
|
Urban Honolulu,
Hawaii
|
0.52
|
0.01
|
$694,900
|
56
|
Seattle-Tacoma-Bellevue, Wash.
|
0.51
|
0.01
|
$627,500
|
30
|
Providence-Warwick,
R.I.-Mass.
|
0.64
|
0.01
|
$369,900
|
44
|
Pittsburgh,
Pa.
|
1.05
|
0.01
|
$197,250
|
59
|
Oxnard-Thousand
Oaks-Ventura, Calif.
|
0.43
|
0.01
|
$689,475
|
40
|
Memphis,
Tenn.-Miss.-Ark.
|
1.01
|
0.01
|
$223,500
|
44
|
Columbus,
Ohio
|
0.95
|
0.01
|
$264,900
|
35
|
Cincinnati,
Ohio-Ky.-Ind.
|
0.89
|
0.01
|
$289,900
|
43
|
Buffalo-Cheektowaga
et al, N.Y.
|
0.92
|
0.01
|
$220,000
|
36
|
Boston-Cambridge-Newton, Mass.-N.H.
|
0.62
|
0.01
|
$594,250
|
30
|
Albany-Schenectady-Troy, N.Y.
|
0.84
|
0.01
|
$299,900
|
64
|
Charleston-North
Charleston, S.C.
|
0.69
|
0.01
|
$427,450
|
67
|
Worcester,
Mass.-Conn.
|
0.85
|
0
|
$349,000
|
36
|
Toledo,
Ohio
|
1.13
|
0
|
$166,950
|
43
|
Omaha-Council Bluffs,
Neb.-Iowa
|
0.81
|
0
|
$297,630
|
29
|
Milwaukee-Waukesha et
al, Wis.
|
0.86
|
0
|
$279,900
|
36
|
Houston-The Woodlands
et al, Texas
|
0.7
|
0
|
$324,945
|
51
|
Cleveland-Elyria,
Ohio
|
1.03
|
0
|
$190,606
|
49
|
McAllen-Edinburg-Mission, Texas
|
0.68
|
-0.01
|
$196,000
|
83
|
Baton Rouge,
La.
|
0.93
|
-0.01
|
$249,900
|
70
|
Youngstown-Warren et
al, Ohio-Pa.
|
1.21
|
-0.01
|
$124,900
|
64
|
Dayton,
Ohio
|
1.15
|
-0.01
|
$157,745
|
38
|
Akron,
Ohio
|
1.11
|
-0.02
|
$174,900
|
40
|
Philadelphia et al,
Pa.-N.J.-Del.-Md.
|
0.92
|
-0.02
|
$288,950
|
46
|
Winston-Salem,
N.C.
|
0.85
|
-0.02
|
$245,000
|
45
|
Scranton--Wilkes-Barre et al, Pa.
|
1.06
|
-0.02
|
$162,400
|
67
|
Oklahoma City,
Okla.
|
0.87
|
-0.02
|
$256,500
|
43
|
New Orleans-Metairie,
La.
|
0.74
|
-0.02
|
$292,500
|
60
|
Louisville et al,
Ky.-Ind.
|
0.91
|
-0.02
|
$277,450
|
43
|
Greensboro-High
Point, N.C.
|
0.85
|
-0.02
|
$245,900
|
45
|
Chattanooga,
Tenn.-Ga.
|
0.77
|
-0.03
|
$289,700
|
51
|
Birmingham-Hoover,
Ala.
|
0.96
|
-0.03
|
$249,000
|
50
|
Rochester,
N.Y.
|
0.93
|
-0.04
|
$222,450
|
31
|
Bakersfield,
Calif.
|
0.79
|
-0.04
|
$260,000
|
43
|
Syracuse,
N.Y.
|
1.04
|
-0.04
|
$184,950
|
51
|
Kansas City,
Mo.-Kan.
|
0.88
|
-0.04
|
$302,500
|
40
|
Tulsa,
Okla.
|
0.89
|
-0.07
|
$239,500
|
50
|
El Paso,
Texas
|
0.79
|
-0.09
|
$191,475
|
68
|
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SOURCE realtor.com