|By Marketwired .||
|August 7, 2014 12:01 AM EDT||
IRVINE, CA -- (Marketwired) -- 08/07/14 -- RealtyTrac® (www.realtytrac.com), the leading online marketplace for real estate data, today released a report analyzing affordability for buying a residential property in more than 1,000 counties nationwide, which shows that as of the second quarter of 2014, one-third of the counties analyzed have surpassed their historical averages for income-to-price affordability percentages since 2000 -- making them less affordable now than they have been on average over the last 14 years.
The report calculated both the percentage of median income needed to make monthly payments on a median-priced home in each county in May 2014 as well as the historical trend in each county's income-to-price affordability percentage going back to January 2000. It also analyzed the impact of rising interest rates on affordability, calculating the percentage of median income needed to make payments on a median-priced home if interest rates rise by a quarter percentage point, a half percentage point, three-quarters of a percentage point or a full percentage point.
"The good news is that none of the nearly 1,200 counties we analyzed for the second quarter has regressed to the dangerously low affordability levels reached during the housing price bubble, and even if interest rates increased 1 percentage point, only 59 counties representing 2 percent of the U.S. population would be at or above bubble levels in terms of affordability," said Daren Blomquist, vice president at RealtyTrac. "But the scales are beginning to tip away from the extremely favorable affordability climate we've seen over the last two years, with one-third of the counties analyzed -- representing 19 percent of the total population in those counties -- now less affordable than their long-term averages.
"Still, 81 percent of the U.S. population lives in markets where the percentage of income needed to purchase a median-priced home is at or below its long-term average," Blomquist continued. "Buyers looking for markets with a combination of affordable housing and a good job climate will find those mostly in the middle of the country, in places such as Columbus, Ohio, Oklahoma City, Omaha, Des Moines and Minneapolis, all of which have counties where 20 percent or less of the median income is needed to buy a median-priced home and where unemployment rates are 5 percent or lower."
Second quarter affordability highlights
Of the 1,194 counties with data in the second quarter (combined population of 258 million), the average percentage of median income needed to buy a median priced home was 19.07 percent.
Of the 1,194 counties with data, 793 counties with a combined population of 210 million (81 percent of total population) had an income-to-price affordability percentage that was below the historical average for that county -- meaning the county was more affordable for buyers than it has been on average over the past 14 years.
Counties still more affordable than their long-term averages in the second quarter included Los Angeles County (by less than a half a percentage point), Cook County, Ill. (Chicago), Maricopa County, Ariz. (Phoenix metro), San Diego and Orange counties in Southern California, Miami-Dade County in South Florida, and the New York City boroughs of Kings County (Brooklyn) and Queens County.
Meanwhile, 401 counties with a combined population of 49 million (19 percent of total population) had an income-to-price affordability percentage above the historical averages for that county -- meaning the county was less affordable for buyers than it has been on average over the past 14 years.
Counties less affordable than their long-term averages included San Francisco County, Calif., Multnomah County, Ore. (Portland), Travis County, Texas (Austin), Bexar County, Texas (San Antonio), Harris County, Texas (Houston) and Fulton County, Ga. (Atlanta).
Inherently unaffordable markets
Of the 2,268 counties with historical affordability data (combined population 305 million), the historical average percentage of median income needed to buy a median priced home was 18.77 percent.
Of those 2,268 total counties, there were 23 counties with a combined population of 21 million (7 percent of total population) with an average historical income-to-price affordability percentage of 50 percent or higher.
Counties in this inherently unaffordable category included vacation home markets like Nantucket County, Mass. (111 percent), Teton County, Wyoming (84 percent), and Pitkin County, Colo. (82 percent) along with four out of the five boroughs in New York City, and San Francisco County (85 percent), and Los Angeles County (50 percent) in California.
Consistently affordable markets
On the other end of the spectrum, there were 831 counties with a combined population of 44 million (14 percent of the total population of the 2,268 counties with historical affordability data) with an average historical income-to-price affordability percentage of 15 percent or less.
Counties in this consistently affordable category included Wayne County, Mich., in the Detroit metro area (13 percent of median income needed to buy a median priced home on average since January 2000), Marion County, Ind., in the Indianapolis metro area (14 percent), Monroe County, N.Y., in the Rochester metro area (12 percent), Baltimore City, Md., (14 percent), and Montgomery County, Ohio, in the Dayton metro area (14 percent).
Affordable with jobs markets
The report also looked at markets with the favorable combination of low income-to-price affordability percentages and low unemployment rates. Among counties with a population of 100,000 or more, there were 66 counties with a combined population of 16 million where the average historical income-to-price affordability percentage was 20 percent or below, where the May 2014 unemployment rate was 5 percent or lower and where the May 2014 income-to-price affordability percentage was below the historical average.
Counties in this affordable-with-jobs markets category included Franklin County, Ohio (Columbus), Oklahoma County, Okla., (Oklahoma City), Tulsa County, Okla., (Tulsa), Summit County, Ohio (Akron), Douglas County, Neb., (Omaha), Greenville County, S.C. (Greenville), and Polk County, Ia., (Des Moines).
Impact of rising interest rates on affordability
The report analyzed the income-to-price affordability percentages in each of the 1,194 counties with data available in the second quarter if median prices remained the same as they were in the second quarter but interest rates rose by a quarter percentage point, a half a percentage point, three-quarters a percentage point or a full percentage point.
If interest rates rise a quarter percentage point, 461 counties with a combined population of 77 million (30 percent of total population) will exceed their historical average for income-to-price affordability percentage, and 27 counties with a combined population of 2.8 million (1.1 percent of total population) will exceed their historical peaks for income-to-price affordability percentage.
If interest rates rise a half a percentage point, 515 counties with a combined population of 87 million (34 percent of total population) will exceed their historical average for income-to-price affordability percentage, and 39 counties representing a combined population of 3.6 million (1.4 percent of total population) will exceed their historical peaks for income-to-price affordability percentage.
If interest rates rise three-quarters of a percentage point, 576 counties with a combined population of 101 million (39 percent of total population) will exceed their historical average for income-to-price affordability percentage, and 46 counties with a combined population of 4.2 million (1.6 percent of total population) will exceed their historical peaks for income-to-price affordability percentage.
If interest rates rise one full percentage point, 630 counties with a combined population of 120 million (46 percent of total population) will exceed their historical averages for income-to-price affordability percentages, and 59 counties with a combined population of 4.7 million (1.8 percent of total population) will exceed their historical peaks for income-to-price affordability percentage.
Affordability rates for this analysis are the percentage of median household income needed to make monthly house payments on a median-priced residential property in each given county in each given month from January 2000 to May 2014. In most states, the median price was derived from sales deeds recorded at the county level. In some states known as non-disclosure states (AK, ID, IN, KS, LA, ME, MS, MO, MT, NM, ND, TX, UT, WY) where the median price is not consistently available from the sales deed, median list prices were used to calculate the affordability rates. Annual median household income data came from the U.S. Census Bureau for 2000 to 2012. Annual median household income for 2013 to 2014 was estimated based upon 2000 to 2012 numbers and then adjusted for current market conditions. In calculating average house payments, fixed 30 year mortgage rates were obtained from Freddie Mac for every month. It was assumed that the average borrower would make a 20 percent down payment, the mortgage term would be 30 years, and insurance combined with property tax would be 1.39 percent of the value of the home.
The RealtyTrac U.S. Foreclosure Market Report is the result of a proprietary evaluation of information compiled by RealtyTrac; the report and any of the information in whole or in part can only be quoted, copied, published, re-published, distributed and/or re-distributed or used in any manner if the user specifically references RealtyTrac as the source for said report and/or any of the information set forth within the report.
Data Licensing and Custom Report Order
Investors, businesses and government institutions can contact RealtyTrac to license bulk foreclosure and neighborhood data or purchase customized reports. For more information contact our Data Licensing Department at 800.462.5193 or [email protected].
About RealtyTrac Inc.
RealtyTrac (www.realtytrac.com) is the leading supplier of U.S. real estate data, with more than 1.5 million active default, foreclosure auction and bank-owned properties, and more than 1 million active for-sale listings on its website, which also provides essential housing information for more than 129 million property parcels nationwide. This information includes property characteristics, tax assessor records, bankruptcy status and sales history, along with 30 categories of key housing-related facts provided by RealtyTrac's wholly-owned subsidiary, Homefacts®. RealtyTrac's foreclosure reports and other housing data are relied on by the Federal Reserve, U.S. Treasury Department, HUD, numerous state housing and banking departments, investment funds as well as millions of real estate professionals and consumers, to help evaluate housing trends and make informed decisions about real estate.
Embedded Video Available: http://www2.marketwire.com/mw/frame_mw?attachid=2653085
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...
Sep. 30, 2016 04:45 PM EDT Reads: 2,000
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Sep. 30, 2016 04:45 PM EDT Reads: 5,261
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
Sep. 30, 2016 04:30 PM EDT Reads: 372
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Sep. 30, 2016 04:30 PM EDT Reads: 1,820
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Sep. 30, 2016 04:30 PM EDT Reads: 729
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Sep. 30, 2016 04:00 PM EDT Reads: 3,581
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
Sep. 30, 2016 03:45 PM EDT Reads: 3,657
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Sep. 30, 2016 03:30 PM EDT Reads: 362
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Sep. 30, 2016 03:00 PM EDT Reads: 3,666
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your ...
Sep. 30, 2016 03:00 PM EDT Reads: 1,238
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Sep. 30, 2016 03:00 PM EDT Reads: 3,013
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.
Sep. 30, 2016 03:00 PM EDT Reads: 1,653
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
Sep. 30, 2016 03:00 PM EDT Reads: 552
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...
Sep. 30, 2016 02:45 PM EDT Reads: 2,648
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
Sep. 30, 2016 02:45 PM EDT Reads: 662