Even though prices have fallen the last few years, the real estate market still remains out of reach for many people in some areas of the country.
Interest.com recently analyzed America’s 25 largest cities to find the least affordable metros based on home prices compared to local median incomes. In 11 of the 25 areas, families didn’t make enough to qualify for mortgages that would allow them to purchase a median-priced home.
“The fundamental [unaffordability] of these markets hasn’t changed despite the fact that home prices are down and we’re seeing incredibly low mortgage rates,” says Mike Sante of Interest.com.
In the priciest markets, housing prices are often pushed up due to high consumer demand, low housing supply, and lack of open space for new construction, according to the study.
According to Interest.com, the following are the five cities that are the least affordable to home buyers in the U.S.:
1. San Francisco
Average median income: $71,975
Median home price: $552,600
*The average family makes 32.8 percent below what’s needed to qualify for a loan on a median-priced home.
2. New York
Average median income: $62,322
Median home price: $377,600
*The average family makes 29.7 percent below what’s needed to qualify for a loan on a median-priced local home.
3. San Diego
Average median income: $59,477
Median home prices: $379,100
*The average family makes 26 percent below what’s needed to qualify for a loan on a median-priced local home.
4. Miami
Average median income: $45,407
Median home prices: $206,700
*The average family makes 12.6 percent below what’s needed to qualify for a loan on a median-priced local home.
5. Los Angeles
Average median income: $56,653
Median home prices: $296,800
*The average family makes 12.5 percent below what’s needed to qualify for a loan on a median-priced local home.
The author of this article is: realtormag.realtor.org
See the original post at: http://realtormag.realtor.org/daily-news/2013/01/04/5-priciest-markets-for-home-buyers
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