How much salary do you need to earn in order to purchase the median-priced home in your metro area?
To find out, HSH.com took the National Association of Realtors’ 2013 first quarter data for median home prices as well as our 2013 first quarter average interest rates for 30-year, fixed-rate mortgages to decipher how much money homebuyers in 25 major metros would need to earn in order to purchase the median-priced home in their market.
With the spring home buying season fully underway, mortgage rates remain at fantastic levels, hitting record lows just a few weeks ago.
Given the real estate market’s continued levels of affordability, can you now afford a home that was once out of your reach?
The last time we ran this calculation was in August of 2012. How have things changed since then? Here’s a current look at how much salary you would need to earn in order to purchase the median-priced home in your metro area.
Cleveland: $15,860.70
- Mortgage rate: 3.66 percent
- Home price: $101,000
- Salary: $15,860.70
Cleveland is king in terms of affordability.
While Cleveland's median-home price has increased by 19 percent over the last year, the median price of $101,000 is still the lowest on our list.
Also, with mortgage rates as low as they are, it only takes a salary of $15,860.70 to afford the principal and interest payment on a median-priced home in Cleveland.
St. Louis: $17,388.16
- Mortgage rate: 3.64 percent
- Home price: $111,000
- Salary: $17,388.16
Despite a dip from the previous quarter, home prices are up by 7 percent in St. Louis since the same time last year.
Affordability in the Gateway to the West has actually improved since the last time we ran these calculations, moving from number three to number two on our list.
Atlanta: $18,074.92
- Mortgage rate: 3.66 percent
- Home price: $115,100
- Salary: $18,074.92
Atlanta remains in the top three in terms of affordability. However, home prices in Atlanta have skyrocketed since 2012, up over 31 percent since the first quarter of last year.
Even though mortgage rates have fallen since last time, Atlanta isn’t quite as cheap as it once was.
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