A new report was released by Attom Data Solutions about affordability of homes in the Charlotte area. Attom Data Solutions is a California-based real estate data firm. They publish an “affordability index” based on percentage of average wages needed to make monthly payments. The payment number includes property taxes, home insurance, and mortgage insurance for a median-priced home. Their data is for 379 counties in the US. The wage data was from the U.S. Bureau of Labor Statistics. Median home prices were calculated from public sales records.
According to the report, in Mecklenburg County you need 24.8% of your annual wages to cover payments on a median priced home of $195,000. Wages are growing here by 5%, but home prices are growing slightly faster at 5.4% so the percentage of wages needed to cover a house payment seem likely to rise as well.
In York County in South Carolina, a buyer would spend 38.6% of their income to pay for a home. The median sales price for a home in York County is $218,500. Home prices are rising much faster here than wages. Home prices here had an annual median growth of 19.3%. This far outpaces the wage growth of 8.8%.
In Union County in North Carolina, homeowners need a shocking 42.1% of their annual wages to pay for a median priced home. Median priced homes in Union County are $218.500 with a median home price growth rate of 14.7%. With wages only increasing at 6%, buyers may feel the pinch in their wallets.
Mecklenburg County
Affordability Index 102
% of Annual wages needed to buy 24.8%
Q1 median sales price $195,000
Annual Average weekly wage growth 5%
Annual median home price growth 5.4%
Union County
Affordability Index 96
% of Annual wages needed to buy 42.1%
Q1 median sales price $218,500
Annual Average weekly wage growth 6%
Annual median home price growth 14.7%
York County
Affordability Index 84
% of Annual wages needed to buy 38.6%
Q1 median sales price $204,000
Annual Average weekly wage growth 8.8%
Annual median home price growth 19.3%
As mortgage interest rates are expected to rise two more times during this year, there may be a slowdown in the median home price growth percentages. There is still a shortage in inventory in the Charlotte area which keeps home prices on the rise due to the laws of supply and demand. With the repeal of HB2, there could be more people seeking out the Charlotte area as we anticipate the probable return of the NCAA tournament and other businesses and sporting events that left in protest. We will keep an eye on the situation and will let you know how it shapes up.
If you are interested in a home in the Charlotte area, give us a call at (704) 525-4045. You can also view homes on our website here.
To read the full article in the Charlotte Business Journal about the Attom Data Solution report, click here.