The ‘REAL’ News about Housing Affordability

Some industry experts are claiming that the housing market may be headed for a slowdown as we proceed through 2017, based on rising home prices and a potential jump in mortgage interest rates. One of the data points they use is the Housing Affordability Index, as reported by the National Association of Realtors (NAR).

Here is how NAR defines the index:

“The Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national level based on the most recent price and income data.”

Basically, a value of 100 means a family earning the median income earns enough to qualify for a mortgage on a median-priced home, based on the price and mortgage interest rates at the time. Anything above 100 means the family has more than enough to qualify.

The higher the index, the easier it is to afford a home.

Why the concern?

The index has been declining over the last several years as home values increased. Some are concerned that too many buyers could be priced out of the market.

But, wait a minute…

Though the index skyrocketed from 2009 through 2013, we must realize that during that time, the housing crisis left the market with an overabundance of distressed properties (foreclosures and short sales). All prices dropped dramatically and distressed properties sold at major discounts. Then, mortgage rates fell like a rock.

The market is recovering, and values are coming back nicely. That has caused the index to fall.

However, let’s remove the crisis years (shaded in gray) and look at the current index as compared to the index from 1990 – 2008:

Though prices and rates appear to be increasing, we must realize that affordability is composed of three ingredients: home prices, interest rates, and income. And, incomes are finally rising.

ATTOM Data Solutions recently released their Q1 2017 U.S. Home Affordability Index. The report explained:

“Stronger wage growth is the silver lining in this report, outpacing home price growth in more than half of the markets for the first time since Q1 2012, when median home prices were still falling nationwide. If that pattern continues, it will help turn the tide in the eroding home affordability trend.”

Bottom Line

Compared to historic norms, it is still a great time to buy from an affordability standpoint.  Give me a call for more information – J.P. Cook – 602-320-4253.

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2925 W Lynx Drive San Tan Valley, AZ 85144

$610,000

3 Beds

2.5 Baths

2,357 SqFt

Status Active

MLS # 6782690

Property Type Single Family Residence

Price Type --

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$610,000

2 Beds

2 Baths

1,356 SqFt

Status Active

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$610,000

3 Beds

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2,131 SqFt

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Property Type Single Family Residence

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1914 N San Luis Circle Sierra Vista, AZ 85635

$610,000

3 Beds

3 Baths

2,965 SqFt

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MLS # 6784470

Property Type Single Family Residence

Price Type --

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16005 W Shaw Butte Drive Surprise, AZ 85379

$610,000

4 Beds

3 Baths

2,977 SqFt

Status Active

MLS # 6778086

Property Type Single Family Residence

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1646 N Chestnut Circle Mesa, AZ 85213

$610,000

4 Beds

3 Baths

2,769 SqFt

Status Active

MLS # 6786978

Property Type Single Family Residence

Price Type --

Your Dream Home Awaits in Mesa, Arizona! Nestled in a quiet cul-de-sac on a spacious .3-acre fenced lot, this stunning 4-bedroom, 3-bathroom ranch style home offers the perfect blend of comfort, style, and outdoor living. Spanning 2,769 square feet, every corner of this home invites you to relax and unwind. Step inside to discover the open canvas for your personal style. You'll find fresh paint throughout the home and garage, and professionally cleaned tile and carpet. Envision yourself in this open-concept spacious kitchen with stainless steel appliances and an abundance of cabinet space, perfect for culinary adventures and entertaining. The remodeled master suite shower brings a touch of luxury for you to relax after a long day. Outside, a backyard oasis awaits! Dive into the in-ground diving pool, or host memorable gatherings in your Arizona room, looking over the beautifully landscaped and fenced yardideal for outdoor dining, lounging, and even extra parking on the extended drive in the back. The expansive yard offers endless possibilities for play, pets, and gardening. Located in a highly desirable neighborhood in Mesa, this home is close to great schools, parks, and shopping, with easy access to everything the city has to offer. Don't miss this rare gem!

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15409 W Corrine Drive Surprise, AZ 85379

$610,000

4 Beds

2.5 Baths

2,990 SqFt

Status Active

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Property Type Single Family Residence

Price Type --

Spacious 4-bed, 2.5-bath, 2-story home on a corner lot in the desirable community of Marley Park! This home features a wrap-around balcony and porch, large rear patio with built in BBQ perfect for enjoying outdoor living. Inside, you'll find a generous loft upstairs, while the primary suite is conveniently located on the first floor, complete with a separate den/office for added privacy. The backyard boasts a sparkling pool, ideal for relaxation and entertaining. With a 2-car garage and leased solar panels for energy efficiency, this home offers both style and sustainability. Don't miss out on this beautiful property!

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1419 California Drive Chino Valley, AZ 86323

$610,000

3 Beds

2 Baths

1,937 SqFt

Status Active

MLS # 6651628

Property Type Single Family Residence

Price Type --

This stunning single-level home in the Chino Valley is a hidden treasure, surpassing the allure of new constructions. Its flawless design and meticulous layout make it a true gem. Boasting 3 bedrooms, 2 baths, and a 2-car garage, this spacious abode offers everything you need. As you step inside, the open and airy ambiance, created by the high-volume ceilings, instantly embraces you, making you feel right at home. In summary, this single-level home surpasses expectations with its impeccable design, thoughtful layout, and luxurious features. It is a haven of comfort and elegance, offering a true sense of home. This remarkable home goes above and beyond with its thoughtful features and attention to detail. Each of the 3 bedrooms boasts its own spacious closet, ensuring ample storage

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1023 E Fairmont Drive Tempe, AZ 85282

$610,000

4 Beds

2 Baths

1,761 SqFt

Status Active

MLS # 6673927

Property Type Single Family Residence

Price Type --

Near ASU and downtown Tempe this charming 4-bedroom, 2-bath home featuring a 2-car garage and RV gated/storage area that is covered with access from front and back. This residence boasts a perfectly flowing layout showcasing tile and wood vinyl flooring, soothing color palette and plantation shutters. The kitchen connects to the living and dining areas with oak cabinetry, a mosaic backsplash, stainless steel appliances, induction oven, modern track lighting and sleek quartz counters. A/C unit is 3 yrs old. French doors lead to a covered patio. Entertaining will be a breeze on the patio with rope lighting or near the fire pit. Home includes security doors and roller shields in rear. New sewer lines in past few yrs.

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930 Leisure World -- Mesa, AZ 85206

$610,000

3 Beds

2 Baths

2,330 SqFt

Status Active

MLS # 6749579

Property Type Single Family Residence

Price Type --

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19618 N 19th Place Phoenix, AZ 85024

$610,000

4 Beds

2.5 Baths

2,005 SqFt

Status Active

MLS # 6717356

Property Type Single Family Residence

Price Type --

New Roof, recently updated AC, Beautiful family home in a tranquil community located on a premium oversized cul-de-sac lot that backs up to a mountain preserve. Property boasts views from the front and the back decks of the valley lights and night stars; 4 bedrooms all upstairs, fireplace downstairs. Beautiful granite countertops and wood cabinets; RV gate with large concrete pad for RV or boat storage or future pool; backyard is an oasis for relaxing, fire pits, desert plants and several fruit trees and private view of the mountain preserve. Close to shopping and 101 access.

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899 S Roanoke Street Gilbert, AZ 85296

$610,000

4 Beds

2.5 Baths

1,892 SqFt

Status Active

MLS # 6723501

Property Type Single Family Residence

Price Type --

Welcome to your dream home in a prime Gilbert neighborhood, offering an exceptional blend of modern luxury and serene surroundings. This meticulously maintained property offers the perfect blend of indoor comfort and outdoor tranquility, making it an ideal choice for discerning buyers. Bathed in natural light, this home boasts extensive remodeling with attention to detail. Featuring waterfall countertops, the kitchen is both stylish and functional, catering to culinary enthusiasts. Custom accent walls in the living room and primary bedroom add character and charm. Experience luxury in the spa-like primary bathroom, offering a retreat within your own home. Enjoy a large, private backyard adorned with fruit trees and a sparkling pool, ideal for relaxation and entertaining. New roof in 2021.

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