Housing affordability declined to a two-year low in the third quarter of 2020, the National Association of Home Builders reports.
A total of 58.3% of new and existing homes sold during the quarter were affordable to families earning an adjusted median income of $72,900. That is down from 59.6% in the second quarter of 2020 and is the lowest percentage since the fourth quarter of 2018.
The national median home price reached an all-time high of $313,000 in the third quarter of 2020, up from the previous record-high of $300,000 set in the second quarter.
"Though low mortgage rates and favorable demographics have helped spur demand, a lack of inventory exacerbated by supply chain issues stemming from the COVID-19 pandemic have contributed to rising home prices," NAHB Chairman Chuck Fowke said in a statement. "Surging lumber prices also peaked more than 170 percent above mid-April levels in September, raising building costs. However, lumber prices are now trending lower, which is good news for prospective home buyers."
