Houston Home Affordability Sees Little Change Despite Slowing Prices
Houston’s home affordability hasn’t changed much during 2016, despite more home inventory on the market and a slowdown in price gains. According to the Houston Business Journal, mortgage site HSH.com performed a study comparing median home prices against the typical debt-to-income ratios required by lenders. Using this formula, HSH.com determined the salary that would be required to afford a median-priced home.
In Houston, this means that an annual household income of $52,275 would be required to afford a median-priced home valued at $217,400. In 2015, a salary of $49,983 was needed to afford a median-priced Houston home valued at $199,300.
Out of the 27 most-expensive cities in the U.S. for home affordability, Houston ranked at #15. San Francisco was the least affordable home buying city according to HSH.com, requiring an annual household income of $161,947.
However, Houston is not out of line when compared to most median home prices in major metropolitan areas. Nationally, home buyers need to have an annual household income of $52,700 to afford a median-priced home valued at $240,700.
Houston home buyers who have been waiting for lower home prices may not want to delay too long. While Houston home prices have softened in upper price tiers, the market remains competitive for homes priced from $200,000 to $400,000. Home prices and days-on-market vary widely from one neighborhood to another.
Typically, autumn represents excellent home buying opportunities, as sellers become motivated to shed unsold homes, and buyers are fewer in number. The relative strength of our home prices will depend on the amount of Houston home inventory available, and our overall economic conditions.
Looking for more information about Houston real estate? We’re here to help you! Obtaining the expert advice of the KW Energy Corridor Team is the first step in a successful home purchase or sale! Contact us today for your personal real estate consultation!
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Houston, TX 77079