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Tag: affordability

Share of Homebuyers With Weaker Credit Profiles Bouncing Back, But Not Everywhere

February 03, 2022 by Kevin Kaczmarek

As we noted in our latest mortgage survey and November newsletterlower-quality credits have been gaining share in the home purchase market and likely will continue to do so, barring a sudden resurgence in refinance activity. Some may ask how this can be the case given daily media headlines describing red-hot housing markets and affordability crises. Before addressing that, we should examine some facts...
 
Is the "Pig in the Python" Back?

June 24, 2021 by Ivy Zelman & Rachel Rockey

In 2009, when distressed activity was top of mind, we were vocal in our concern that the buildup of foreclosure moratoriums was portraying a false sense of security at a time when industry participants and investors were hoping for a bottoming out in the market. Our views were justified as...
A Single-Family Buy-Versus-Rent Comparison Like Never Before

May 25, 2021 by Dennis McGill & Alan Ratner

Historically, buy-versus-rent calculations have been widely utilized to assess housing affordability, but we have always struggled with the limitations around real world comparability. Data constraints have led many to compare different asset classes (single-family versus multi-family)...
Revisiting History as Mortgage Rates Climb Higher

April 01, 2021 by Ivy Zelman & Dennis McGill

No discussion about the health of, and future outlook for, the housing market would be complete without consideration of the mortgage rate environment. During our September 2020 Virtual Housing Summit presentation, we spent considerable time dissecting the various catalysts...
High-End Housing is Back, and For Now, It’s Outperforming

December 17, 2020 by Ryan McKeveny & Dennis McGill

Alongside the broad-based 2H20 surge in homes sales, home prices and housing demand more generally, a notable undertone has been relative outperformance within the high-end segment of the market. What had easily been the most subdued piece of the housing puzzle in 2018 and 2019 has shifted to an outsized contributor of growth...
 
Home Price Increases Starting to Overcome Low Mortgage Rate Benefit

October 21, 2020 by Zelman & Associates

In 2019, the median and average new home cost $321,500 and $383,900, according to the Census Bureau. However, with almost 95% of purchases financed with a mortgage, it is not the total cost, but rather the monthly payment...
Contrary to Perception, Little Difference Between Young and Old DTI Ratios

September 06, 2019 by Zelman & Associates

Earlier this week, Home Mortgage Disclosure Act (HMDA) data for 2018 was released. The annual dataset is enormous and serves as the primary baseline for most analyses of the mortgage market and its participants. This year also includes numerous ...

Alarming Increase in Mortgage Debt-to-Income Ratios Reverses Course

July 26, 2019 by Zelman & Associates

Late last year, the average mortgage debt accumulated by homebuyers relative to their income was quickly rising, which was attributable to home price appreciation outpacing income growth, spiking mortgage rates and more lenient underwriting ...

As “Crisis” Calls Mount, an Eye-Opening Spin on Affordability

July 12, 2019 by Zelman & Associates

From 2011-18, national existing home prices and apartment rents have climbed by 50-55% and 35-40%, respectively, easily outpacing 17% income growth for non-supervisory and production employees that represent the vast majority of the employment ...

A Fair Premium for New Homes Versus Existing Stock a Complicated Topic

June 14, 2019 by Zelman & Associates

Earlier this week, Redfin, the technology-enabled real estate brokerage, published a study on the valuation premium associated with a garage versus a similar property without one. Across its national analysis, the average premium realized for ...