Stronger wage and job growth, atop reductions in mortgage rates, have been welcome signs for clients in the market for a new home this summer. But advisors must note affordability hurdles are still prominent and
While in certain cities homebuyers are gaining
House prices are outpacing wages in about 40% of markets, and 61% were less affordable than the historic average, according to Attom Data Solutions. In 353 of the 480 counties analyzed by Attom, homes were not affordable to average wage earners in the second quarter.
Here's a look at 12 cities most in danger of a housing bubble this summer. The analysis, based on Attom data, evaluates localities with a minimum population of 100,000, at least 100 quarterly home sales and a median sales price above the national rate of $255,000. Counties are ranked by the gap between the annual increase in home prices and wages. Ties were broken by the lowest Affordability Index Value. The Attom Data Home Affordability Index measures average wages to buy a median-priced home on a recent and historical basis.