CBEI Central Wisconsin Fall 2021 Report

Housing and Construction Table 9 National Affordability Index (Third Quarter 2021)

Years

Median Price Existing Single Family Home

Mortgage Rate

Monthly P & I Payment

Payment as % of Income

Median Family Income

Qualifying Income

Composite

2020

300,200 363,700

3.17 2.92

1,035 1,214

14.6 16.6

84,969 87,874

49,680 58,281

171.0 150.8

Q3 2021

Description: • Composite Index measures affordability. An index of 150 means that a family earning the median family income has 150% of income necessary to quality for a conventional loan covering 80% of a median price family home. Analysis: • The median price of a single-family home has increased by a staggering 21% since 2020! • The increase in home prices has reduced the Composite Index from 171 to 150.8, indicating declining affordability de-

spite lower mortgage rates and higher median family income. • Qualifying income has increased from $49,680 to $58,281. Table 10

Median Home Prices and Home Sales (Third Quarter 2021) Wisconsin Marathon Portage

Wood

2021 Q3

% ∆ Yr. Ago

2021 Q3

% ∆ Yr. Ago

2021 Q3

% ∆ Yr. Ago

2021 Q3

% ∆ Yr. Ago

Median Home Prices

250,000 8.70 200,000 4.16 229,950 6.95 167,050 20.26

Home Sales

26,690 -7.57

520

-17.72

244

-13.78

322

9.15

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: • With the exception of Wood County, increases in median home prices have been more modest than in the nation overall. • Along with the state overall, the decline in home sales combined with higher prices in Marathon and Portage counties implies a decrease in the supply of homes for sale in these areas over the last year. • The increase in home sales combined with significantly higher prices implies an increase in the demand for homes in Wood County.

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Center for Business and Economic Insight

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