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HOME VALUES UP
IN THE EAST
For core-based statistical areas, the West
Coast usually holds the top 10 spots in the Pro
Teck Home Value Forecast, but this month the
Durham-Chapel Hill, NC Core Based Statistical
Area (CBSA) has been added with regards to
positive scores in the categories of affordability
and foreclosure rates among others.
In looking at the affordability for how the
Durham-Chapel Hill, NC CBSA compares to
the other CBSAs on the list, affordability today
is at 162, from a high of 209 in 2013 and a low of
124 in 2007.
According to the report, affordability is
derived from looking at the median income
for a particular area as a ratio to the mortgage
payment needed to purchase a median priced
home. Additionally, an index score above 100
signifies that a household earning the median
income has more than enough income to afford
the mortgage while lower scores suggest more
income is needed to cover mortgage expenses.
e Collateral Analytics Affordability Index
used by the ProTeck Home Value Forecast also
looks at loan-to-value norms for a particular area
to adjust for more affluent buyers usually putting
more money down.
In all, this area is more affordable than
the average index of 100 for the U.S., making
salaries go farther when purchasing a home.
Before the crash, affordability topped at 165
and hit bottom at 125 which was a 24.24 percent
drop.
Additionally, the report states that with
tighter credit policy, the "hot" markets seen
currently are mostly based on employment
and household income gains. Cities like San
Francisco, Dallas and now Durham-Chapel
Hill leading the way.
In regards to the foreclosure ratio for
Durham-Chapel Hill, percentage state at 5.78
percent with a decrease of 2.86 percent from
the previous month. With a ranking of number
3 overall, Durham-Chapel Hill is putting the
East Coast back on the map for top CBSAs.
The
number of
consecutive
months
of year
over year
foreclosure
decline as of
June 2016.
Source: CoreLogic
STAT INSIGHT
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