ATLANTA – The latest reading of a Federal Reserve Bank of Atlanta measure and U.S. housing trends shows that homeownership is becoming out of reach for many buyers, and resistance to higher prices is building. More than 80% of U.S. metro areas had a drop in affordability.
With a 92.2 rating in June, the Federal Reserve Bank of Atlanta’s Home Ownership Affordability Monitor (HOAM) index fell to its lowest level since 2008. The index fell below 100 in March and has remained there, and a reading below 100 indicates that a median-income household can no longer afford to own a median-priced home on the market.
Over the past year, the index shows that U.S. homeownership affordability dropped by 11.9% as prices soared. In June, median existing home sale prices rose above a record $340,000 (three-month moving average), according to data provider CoreLogic. This valuation represents a 23.8% increase