KIRO Radio's Tom Kelly digs deep into the Puget Sound real estate market
Real Estate

Less than one-third can afford Seattle-area home

Nationwide housing affordability slipped several notches as recovering markets witnessed significant firming of home prices in the second quarter, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).

In all, 69.3 percent of new and existing homes sold between the beginning of April and end of June were affordable to families earning the U.S. median income of $64,400. This is down from the 73.7 percent of homes sold that were affordable to median-income earners in the first quarter, and the first time that the measure has fallen below 70 percent since late 2008.

Less than one-third of all families (30.7 percent) in the Seattle-Bellevue-Everett region can now afford the median priced home of $370,000, according to the survey. The area's median income was listed as $81,400.

"Now that markets across the country are recovering, home values are strengthening at the same time that the cost of building homes is rising due to tightened supplies of building materials, developable lots and labor", said Rick Judson, NAHB chairman Rick Judson.

For a third consecutive quarter, San Francisco-San Mateo-Redwood City, Calif. held the lowest spot among major markets on the affordability chart. There, just 19.3 percent of homes sold in the second quarter were affordable to families earning the area's median income of $101,200.

"Rising home prices signal the improving health in housing markets, and the median price of all new and existing U.S. homes sold in this year's second quarter, at $202,000, was well ahead of the second quarter 2012 median price of $185,000," said David Crowe, NAHB chief economist.

Top Stories

  • Don't Be An Idiot
    Jason Rantz has some pretty simple advice if you're looking for a job

  • Among the Elite
    Make that 7-0 for Wilson & the Hawks against Peyton, Tom Brady, Aaron Rodgers, Drew Brees

  • Record Homeless
    New data says a record number of public school students in our state are homeless
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Listen to the show
Hear Real Estate Today on KIRO Radio
Join Tom Kelly every Sunday at 9am on KIRO Radio to talk Puget Sound real estate.

Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.