Housing and Construction Table 11 National Affordability Index (February)
Years
Median Price Existing Single Family Home
Mortgage Rate
Monthly P & I Payment
Payment as % of Income
Median Family Income
Qualifying Income
Composite
2022 Feb. 2023 Feb.
$370,000 $367,500
3.83 6.34
$1,384 $1,827
19.3 24.1
$85,952 $91,152
$66,432 $87,696
129.4 103.9
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. Analysis: • Despite declines in median home prices and increases in median family income, affordability has declined significantly over the last year. • The significant increase in mortgage rates account for the decline in affordability since Q1 2022 • Affordability, however, has improved slightly since Q3 2022 because with the fall of median home prices and mortgage rates stabilizing. • For more analysis, see Kevin Bahr’s report.
Table 12 Median Home Prices and Home Sales (First Quarter 2023) Wisconsin Marathon Portage
Wood
2023 Q1
% ∆ Yr. Ago
2023 Q1
% ∆ Yr. Ago
2023 Q1
% ∆ Yr. Ago
2023 Q1
% ∆ Yr. Ago
Median Home Prices
$262,500 8.6 $227,450 14.7 $240,000 3.8 $168,250 4.0
Home Sales
10,834 -37.7
206
-28.2
95
-20.0
175
4.6
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: • The combination of higher median prices and lower home sales for Wisconsin as well as Marathon and Portage counties indicates a reduction in the supply of homes for sale on the market. • Both median home prices and home sales increased for Wood County. Table 13 Residential Construction: Stevens Point - Plover Area (First Quarter 2023) Permits Issued Number of Housing Units Estimated Value of New Homes (x1000) Alteration Permits Issued Estimated Value of Alterations (x1000)
2023 Q1
2022 Q1
2023 Q1
2022 Q1
2023 Q1
% ∆ Yr. Ago
2023 Q1
2022 Q1
2023 Q1
% ∆ Yr. Ago
20
31
25 $7,141.00 -34.8
239
220 $3,004.95 20.7
21
Description: • The above provides construction figures for both new homes and residential alterations. The above estimated values are in thousands of dollars. Analysis: • The estimated value of new home construction has declined by 34.8% relative to Q1 2022. Rising interest rates may account for the decline. • The estimated value of alterations has increased by 20.7% over the same period. Higher interest rates potentially cause homeowners to improve the quality of their current home instead of selling their existing home buying a new one.
20
Center for Business and Economic Insight
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