Housing and Construction Table 9 National Affordability Index (Feb. 2022)
Years
Median Price Existing Single Family Home
Mortgage Rate
Monthly P & I Payment
Payment as % of Income
Median Family Income
Qualifying Income
Composite
2021
315,100 363,800
2.86 3.83
1,044 1,361
14.7 18.5
85,378 88,424
50,112 65,328
170.4 135.4
Feb. 2022
Description: • Composite Index measures affordability. An index of 150 means that a family earning the median family income has 150% of income necessary to qualify for a conventional loan covering 80% of a median price single-family home. First quarter data was not avaiable at time of publication. Analysis: • First quarter data was not available at the time of this report. • While the median home price increased by 15.5% over the last year, the current median price is about the same as it was in the Third Quarter of 2021. • Higher prices combined with higher mortgage rates has reduced the Composite Index from 170.4 to 135.4, indicating declining affordability. • Qualifying income has increased from $50,112 to $65,328. • This is data from February which does not include more recent hikes in mortgage rates which now are in the 5 percent range.
Table 10 Median Home Prices and Home Sales (First Quarter 2022) Wisconsin Marathon Portage
Wood
2022 Q1
% ∆ Yr. Ago
2022 Q1
% ∆ Yr. Ago
2022 Q1
% ∆ Yr. Ago
2022 Q1
% ∆ Yr. Ago
Median Home Prices
240,000 9.59 194,000 13.12 231,000 15.06 161,500 21.43
Home Sales
14,699 -4.30
262
-22.02
114
-14.93
165
2.36
Description: • Above table gives median home prices and home sales for the state of Wisconsin and the counties of Central Wisconsin. • If you list home prices from lowest to highest, the median home price is the one at the half way point. Analysis: • Percentage increases in median home prices in the state and Central Wisconsin region over the last year are in line with increases at the national level. • Home sales have fallen significantly in the state, Marathon County and Portage County, implying a decrease in the supply of homes available for sale. • Despite significantly higher prices, Wood County witnessed a modest increase in home sales, implying an increase in the demand for homes in Wood County. • The increase in home prices may be coming to an end with median home prices in Wisconsin, Marathon County, and Wood County now slightly lower than in Third Quarter 2021.
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Center for Business and Economic Insight
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