Despite rising rates, ongoing investment demand has continued to counteract them. As of recent, China was the largest inbound real estate investor since 2007. What does this mean? They accounted for a about a quarter of the total cross-border investments. Arguably, they have helped maintain our real estate market. Consequently, new home purchases continue to be affordable.
In fact, housing affordability is at it’s lowest point since 2008. Appreciation, rising rates, shortages of build able lots, and excessive regulations are the cause of this according to Wells Fargo Housing Opportunity Index (HOI).With mortgage rates rising, incomes are as well, maintaining affordability. Ironically, these factors haven’t negatively affected the market. Strangely enough, it is quite the contrary. Meanwhile home pricing has remained somewhat steady.
National median home price increased from $247,000 to $250,000. No doubt and increase, however small. Mortgage rates also increased from 3.76% to 3.84%. Another small increase. Presently, the top five affordable housing markets in order are: Buffalo-Cheektowaga-Niagra Falls, N.Y.; Harrisburg-Carlisle, Pa.; Cincinatti, Ohio-Ky.-Ind. (tied with Harrisburg); and Syracuse, N.Y.
For the 17th consecutive quarter, San Francisco has topped the charts again as the nation’s least affordable major housing market. This comes as no surprise, as the city itself has not been considered affordable in quite some time, if ever. Regrettably, only 7.8% of homes sold in quarter 4 were affordable to families earning median incomes of $104,700 for the area. Incidentally, affordability in California is at an all time low.
All in all, looks like it’s a great time to move to New Mexico! Finally, if you have any questions or comments, please leave them below. Feel free to send me an email, and I will respond as quickly as possible. For more pressing concerns, please don’t hesitate to give me a call!
Bernadette A. Matthiensen