HOUSINGNEWS REPORT
RECESSION FEARS RISING: HOW HOUSING WILL HOLD UP
Affordability . There’s no doubt that the median-income family cannot afford the median property in any number of high-cost markets. The bigger issue is that people outside major metro areas are also running into affordability problems. According to ATTOM Data Solutions, home value increases outpaced wages in 64 percent of the 432 counties it studied in the second quarter. “Slowing home price appreciation in the second quarter was not enough to counteract an 11 percent increase in mortgage rates compared to a year ago, resulting in the worst home affordability we’ve seen in nearly
create another fall in housing prices. Consider avoiding stocks that suffer from a real estate slowdown, such as home builders, small/mid-size banks, and mortgage companies with heavy exposure to California, Nevada, Oregon, Washington, and Florida.” As we have seen, while recessions are inevitable, bad results are not. It is very possible to have both an economic slowdown as well as rising home prices, good evidence of a solid housing sector. If we look ahead there’s reason to believe that real estate is better prepared for a downturn than at any time since World War II.
10 years,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “Meanwhile home price appreciation continued to outpace wage growth, speeding up the affordability treadmill for prospective homebuyers even without the rise in mortgage rates.” “The market is always changing,” said RE/MAX CEO Adam Contos. “We are constantly looking at all global economic and social trends and forecasts that factor into that. a change in migration patterns across the U.S,. including a surge in home sales in the suburbs, less- populated markets and even more affordable states. Cities that offer the most effective transportation systems and those that promote high-amenity, ‘walkable,’ contemporary neighborhoods will benefit the most.” “For example, because of low inventory in popular markets, we are seeing
“Because of low inventory in popular markets, we are seeing a change in migration patterns across the U.S,. including a surge in home sales in the suburbs, less-populated markets and even more affordable states.”
ADAM CONTO CEO, RE/MAX
Q2 2018 U.S. HOME AFFORDABILITY HEAT MAP Q2 2018 AFFORDABILITY INDEX* (UNDER 100 IS LESS AFFORDABLE THAN HISTORIC AVERAGE) 47 258
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AUG 2018 | ATTOM DATA SOLUTIONS
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