Rising prices of Vero Beach homes have helped restore home equity to many, but more than a third of potential homebuyers — 38 percent — earning the national median household income of $63,900 cannot afford to buy Vero Beach homes that sold over the last quarter.
Rising Prices of Vero Beach Homes Partly to Blame
The rising prices of Vero Beach homes are partly to blame, along with stagnant incomes, mounting student loan debt and tougher credit standards requiring unattainable down payments.
The national median home price increased from $214,000 in the second quarter to $221,000 in the third quarter. Meanwhile, average mortgage interest rates slid from 4.44 percent to 4.35 percent in the same period, according to home builders.
“Even with nationwide home prices reaching their highest level since the end of 2007, affordability still remains fairly high by historical standards,” according to NAHB Chief Economist David Crowe. “Rising employment and incomes, interest rates that remain near historically low levels, and pent-up demand should contribute to positive momentum heading into next year.”
Overall, 61.8 percent of new and existing Vero Beach homes sold between the beginning of July and the end of September were affordable to families earning the U.S. median income. That's down from the 62.6 percent of homes sold that were affordable to median-income earners in the second quarter.
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