American Land Title Association
Print Friendly
Home  >  News Room
News Room

SoftPro is the nation's leading provider of Real Estate Closing and Title Insurance software

North American Title Insurance Company is a seasoned title insurance underwriter that has been helping customers achieve the American dream of homeownership for more than 50 years. In the past several years, we have become known as the “underwriter next door,� because our associates are always easy to reach and our processes are, at all times, quick and straightforward. Our agency application process is fast and transparent for qualified agents. NATIC offers a one-hour underwriting response guarantee that is unparallelled in our industry. In addition, we value our agents based on their title industry knowledge and experience, not just on profits alone.

Housing set to become less affordable

May 12, 2004

Median-income buyers priced out of key cities

Inman News

First-time home buyers who have a 10 percent down payment will no longer qualify for a mortgage on a median-priced home this year, and by 2007 repeat buyers who have a 20 percent down payment will not qualify for a mortgage on a median-priced home, according to a Fannie Mae Foundation study on "Homeownership Affordability in Urban America: Past and Future."

This study gauged trends in the affordability of homes for median-income working Americans, focusing on 1990-2003 statistics and projected 2004-08 trends for the nation as a whole, for 11 selected metropolitan areas, and for schoolteachers, nurses, firefighters and police officers.

Median-income workers are already priced out of four of the metropolitan markets studied: Boston, Los Angeles, New York, and San Francisco. In these areas, first-time home buyers must have an income at least twice the area's median-income level to afford a median-priced home. In these four metro areas and in Washington, D.C., many two-income families cannot afford to purchase a median-priced home.

Median-priced homes are affordable or nearly affordable for median-income home buyers in three of the 11 studied metro areas: Atlanta, Houston and Philadelphia, and fast-rising home prices are making homes "barely or nearly affordable to unaffordable" for median-income residents of Chicago, Denver, Seattle and Washington, D.C., the study concludes.

Nationally, average-wage schoolteachers, nurses, police officers and firefighters cannot afford to buy a median-priced home with a 10 percent down payment, and average-wage police officers and firefighters are hard-pressed to purchase a median-price home, even with a 20 percent down payment, the study found.

Assuming a 4.8 percent home-price appreciation rate for the next five years, the median home price could reach $215,200 in 2008, compared with a projected median family income of $64,400 in 2008. At that rate, the home ownership affordability ratio – in which percents above 100 are considered to be unaffordable and percents below 100 are considered to be affordable – is expected to reach 102 percent in 2007 and 108 percent in 2008, the study projects.

Copyright: Inman News Features

Print Friendly

How To Find Us:
American Land Title Association
1800 M Street, NW, Suite 300S
Washington, D.C. 20036-5828
P. 202.296.3671 F. 202.223.5843
Copyright © 2004-2016 American Land Title Association. All rights reserved.
SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment