The first time buyer affordability statistics are in. The National Association of REALTORS published this data recently on their website. It is noted that this data is reflecting our nation as a whole and not specifically for certain market areas. Here in the Silicon Valley home values remain among the highest in the country.
Home affordability is measured by tracking the median home values to annual income across the nation. Eventhough median income has dropped in 2011 compared to 2010 and 2009 mortgage interest rates and home values have dropped too making 2011 more affordable than the previous years in this study. The exception is in the second quarter of 2012.
| Effective | Effective | Prime | |||||||||
| Starter | 10% Down | Loan | Interest | Int Rate | Monthly | First-Time | Qualifying | First-Time | Composite | ||
| Year | Quarter | Home Price | Payment | Amount | Rate | Plus PMI | Payment | Median Income | Income | Buyer Index | Index |
| 2009 | 146,300 | 14,630 | 131,670 | 5.14 | 5.39 | 739 | 39,703 | 35,472 | 111.9 | 169.4 | |
| 2010 | 147,100 | 14,710 | 132,390 | 4.89 | 5.14 | 722 | 39,853 | 34,656 | 115.0 | 174.0 | |
| 2011 | 141,300 | 14,130 | 127,170 | 4.67 | 4.92 | 676 | 39,540 | 32,448 | 121.9 | 184.5 | |
| 2011 | II | 143,700 | 14,370 | 129,330 | 4.85 | 5.10 | 702 | 39,534 | 33,696 | 117.3 | 177.5 |
| 2011 | III | 144,000 | 14,400 | 129,600 | 4.63 | 4.88 | 686 | 39,552 | 32,928 | 120.1 | 181.9 |
| 2011 | IV | 138,200 | 13,820 | 124,380 | 4.31 | 4.56 | 635 | 39,574 | 30,480 | 129.8 | 197.0 |
| 2012 | I r | 134,800 | 13,480 | 121,320 | 4.18 | 4.43 | 610 | 39,632 | 29,280 | 135.4 | 205.2 |
| 2012 | II p | 154,300 | 15,430 | 138,870 | 3.92 | 4.17 | 677 | 39,675 | 32,496 | 122.1 | 185.1 |
| ©2012 National Association of REALTORS® |
Comments(4)