DS News

27 Journal Where Affordability Declined the Most Year Over Year » Charlotte, North Carolina (+62.5%) » Tampa, Florida (+59.6%) » Raleigh, North Carolina (+59.6%) » Orlando, Florida (+56.2%) » Phoenix (+56.1%) Where Affordability Declined the Least Year Over Year » Virginia Beach, Virginia (+28.5%) » Detroit (+29.9%) » Portland, Oregon (+30.7%) » Boston (+31.4%) » Louisville, Kentucky (+32.5%) Impact of Household Income Growth "In April, affordability declined the most year over year in Charlotte, North Carolina, mostly due to the nearly 28% annual increase in nominal house price growth. e strong investor activity and net-in migration in Charlotte increased demand for homes against a limited supply of homes for sale," Fleming said. "e second greatest year-over-year decline in affordability occurred in Tampa, Florida, but was driven by annual nominal house price growth of 37%, a greater increase in house prices than in Charlotte. "Comparing the decline in affordability in Charlotte with Tampa illustrates the importance of shifts in household income. While annual house price appreciation in Tampa outpaced that of Charlotte, the decline in affordability was tempered by growth in household income," Fleming said. "Ultimately, the common dynamic across all 50 markets tracked in the RHPI is that nominal house price appreciation outpaced house-buying power. "In the markets where affordability declined the least, nominal house price growth was slower and household income growth was strong," Fleming said. "For example, in Virginia Beach, Virginia, nominal house price growth was 14.5% in April, while annual household income growth reached double digits, further highlighting how rising income can help to mitigate the affordability loss from rising rates and higher house prices." What Do ese Dynamics Mean Looking Ahead? "Housing affordability is rapidly declining, and our preliminary nominal house price index estimates for May and June indicate that house price growth is already moderating as potential buyers are pulling back from the market," Fleming said. "e pandemic-driven supply and demand imbalance that fueled historically strong house price appreciation is coming to an end as the housing market rebalances to a new normal. Yet, the rebalancing will differ from city to city based on localized shifts in supply and demand and income levels." April 2022 Real House Price Index Highlights » Real house prices increased 11.4% between March 2022 and April 2022. » Real house prices increased 45.6% between April 2021 and April 2022. » Consumer house-buying power, how much one can buy based on changes in income and interest rates, decreased 8.75% between March 2022 and April 2022, and decreased 16.7% year over year. » Median household income has increased 5.0% since April 2021 and 71.3% since January 2000. » Real house prices are 24.3% more expensive than in January 2000. While unadjusted house prices are now 52.9% above the housing boom peak in 2006, real house- buying power-adjusted house prices remain 12.3% below their 2006 housing boom peak. April 2022 Real House Price State Highlights » e five states with the greatest year-over-year increase in the RHPI are: Florida (+64.1), South Carolina (+60.5%), Arizona (+54.1%), Georgia (+52.8), and Connecticut (+51.5%). » ere were no states with a year-over-year decrease in the RHPI. » April 2022 Real House Price Local Market Highlights » Among the Core-Based Statistical Areas (CBSAs) tracked by First American, the five markets with the greatest year-over- year increase in the RHPI are: Charlotte, North Carolina (+62.5); Tampa, Florida (+59.6%); Raleigh, North Carolina (+59.6%); Orlando, Florida (+56.2%); and Phoenix (+56.1%). » Among the Core-Based Statistical Areas (CBSAs) tracked by First American, there were no markets with a year-over-year decrease in the RHPI. THE LEADER IN DEFAULT SERVICING NEWS Help shape the next issue of DS News. Drop us a line at Editor@DSNews.com. THEFIVESTARINSTITUTE

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