The combination of rising home prices (7.7 percent) and falling wages (1.4 percent) are the prime factors in U.S. home affordability dropping to a 9-year low.
Year-over-year home price growth was greater than wage growth in 87 percent of the nation’d housing markets, including 8 of 9 Bay Area counties. The U.S. median home price at the end of the second quarter was $253,000.
These factors, together with rising mortgage rates, have pushed affordability to the lowest point since 2008.
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