Homes Becoming More Affordable Despite Rising Prices

National median listing price sets new record at $315,000; 74 of nation's 100 largest metros become more affordable than last year

News provided by

realtor.com

Jun 06, 2019, 09:00 ET

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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