» VISIT US ONLINE @ DSNEWS.COM
83
OHIO
Ohio Cities Hold Most Purchasing Power
Rising home prices, mortgage rates, and less available
inventory are causing homebuyers to miss out on getting the most
bang for their buck this house-hunting season.
Figures determined by the First American Real House Price
Index, which measures home price changes adjusted for income,
interest rates, and house-buying power, are intended to measure
affordability at the national, state, and metro levels.
According to Mark Fleming, Chief Economist at First
American, a dip in the average rate for a 30-year fixed-rate
mortgage and wage gains increased consumer house-buying
power sufficiently to offset the gain in unadjusted house prices.
"e decline is real, and purchasing power adjusted house
prices between March and April was the largest month-over-
month decline since July 2016 and a respite from the 8-month-
long trend of increasing real house prices," Fleming said.
Although finding the right deal to purchase a home has
become puzzling for homebuyers, the combination of home prices
and local wages are making some markets more appealing than
others.
Cleveland, Ohio, topped the list of cities with the max
purchasing power with a real home price index of 47.04, a year-
over-year change of 9 percent, and a median sales price of $123,525.
Another Ohio city, Columbus, follows with a real home price
index of 54.22, a year-over-year change of 9.61 percent, and a
median sales price of $160,000.
Cincinnati, Ohio, took the third spot with a real home price
index of 58.92, a year-over-year change of about 6 percent, and a
median sales price of $135,000.
Homebuyers must think about many aspects before
considering which city and state to call home. Purchasing power
is in the hands of the buyer—as long as the homebuyer chooses a
more affordable city to live in.
83
