Nationwide, the average price of a single-family home fell modestly to $249,400 in January, from $256,400 in December. The average home cost $261,600 in 2018 and $248,800 in 2017, according to new National Association of Realtors data, released Friday.

The modest downtick pushes the National Association of Realtors’ Housing Affordability Index to 155.8 points, compared to 155.3 in all of 2018.

NAR

The index, which has been published since in 1970, examines housing affordability based not only on median home prices, but also median family incomes and average mortgage interest rates. All three metrics improved this month — mortgage rates fell from 4.99 percent to 4.76 percent while the lowest income needed to buy an average house also fell slightly.

To buy a single-family home at the national median price, a family needs an overall income of $50,016 – down from $52,800 last month. Meanwhile, the percentage of income that a family will spend on their mortgage fell to 16.1 percent from 17 percent.

It is still too early to tell whether the current gains in affordability will continue to hold – experts predict that rapid home value growth and income stagnation will continue to make affordability a problem in the coming months.

Email Veronika Bondarenko

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×