The NAHB released the Q3 Housing Opportunity Index (HOI) yesterday:
NAHB-Wells Fargo Housing Opportunity Index (HOI)
Affordability continues to fall across New Jersey:
New York-White Plains-Wayne, NY-NJ
2005.Q3 6.7
2005.Q4 5.7
2006.Q1 6.1
2006.Q2 5.9
2006.Q3 5.1
Newark-Union, NJ-PA
2005.Q3 23.6
2005.Q4 23.3
2006.Q1 28.7
2006.Q2 20.7
2006.Q3 16.7
Atlantic City, NJ
2005.Q3 36.3
2005.Q4 33.8
2006.Q1 35
2006.Q2 26.1
2006.Q3 29.2
Trenton-Ewing, NJ
2005.Q3 50.1
2005.Q4 52.4
2006.Q1 57.8
2006.Q2 52.2
2006.Q3 46.4
Vineland-Millville-Bridgeton, NJ
2005.Q3 69.1
2005.Q4 59.7
2006.Q1 51.5
2006.Q2 59.7
2006.Q3 51.8
What is the HOI you ask?
The Housing Opportunity Index (HOI) for a given area is defined as the share of homes sold in that area that would have been affordable to a family earning the local median income based on standard mortgage underwriting criteria. Therefore, there are really two major components — income and housing cost.
And for those who prefer graphs:
(click to enlarge)
Caveat Emptor!
jb
The New York-White Plains-Wayne, NY-NJ MSA is currently the 10th least affordable MSA in the U.S.
http://www.nahb.org/fileUpload_details.aspx?contentID=535
jb
Hey affordability on California was changes thisa year – want to know how??
New Guidelines review Affordable house relative to salary as x4.8 of yearly income pre-tax. previous one was at 2.8…
So lets do the same in NJ – call Affordable homes with x5 yearly income, and than all of the sudden housing is the most affordable in years!!!
All you need to do is to change standard mortage underwriting criteria – whats the deal, everyone getting stated incom loans anyways. If california did it last year – why can’t new jersey do it this year -whatever it takes to keep lwnding/selling/buying party going…
Just an example of how to interpret the HOI index:
In the New York-White Plains-Wayne, NY-NJ MSA, only 5.1% of homes available are affordable to a family earning the median income (NAHB uses $59,200 for this MSA)..
jb
A little comparison to go along.
In the first quarter of 1999, the HOI for the same MSA was 56.8. A family earning $53,400 could afford 56.8% of homes available in that MSA. Quite a difference.
jb
“‘This is the first time I’ve ever seen a slowdown in the face of low interest rates,’ (realtor) David Stark
This is second time Daveyboy. Back in the good ole last housing bubble early 1990’s interest rates were at 9% and fell to 6% while rela estate prices tanked….40-50% for condos and about 20-25% for houses….
This one will be worse Greedy grubbers..
BOOOOOOOOOOOOYAAAAAAAAAA
Bob
READ MY LIPS PONZI ADDICTS…NO SPRING REBOUND…..MASSACRE COMING TO A HOOD NEAR YOU.
Be Really worried grubbers really worried.
BOOOOOOOOOOOYAAAAAAAAAAAA
Bob
You buy near asking you are an underwater STOOGE!
Plaster a big “S” on your forehead.
MIN…25% off peak prices..Minimum…
babababa
For those wondering when New Jersey is going to adopt the new CSBS Nontraditional Mortgage Guidance:
Dear Mr. Bednar,
The Department is in the process of review all on the information in
reference to the above subject. When the review has been completed, a
decision will be made on how best to proceed forward. We appreciate your
interest in this matter, and it is the Department’s intention to arrive at
a decision shortly.
Terry K. McEwen, Director
NJ Department of Banking & Insurance
PO Box 040
Trenton, NJ 08625
YEAH KEEP THE PONZI SCHEME GOING. LOTS AND LOTS OF EAGER FOOLS READY TO SIGN UP FOR DEBT SLAVERY.
WHAT A BROKEN SOCIETY.
BABABABA
To reply to post #8 by James:
I was actually kidding in my post #2. Did not know it was in works already….
No props for Edison?
We’re at 25.7 percent with a median income of $87.5K.
That translates to No.149 in affordability, No. 6 in income, but I didn’t take the historical data. Would you mind posting?
Edison doesn’t have a full history, only goes back to 2005.
Edison, NJ^^^
2005.Q3 30.8
2005.Q4 28
2006.Q1 30.8
2006.Q2 27.3
2006.Q3 25.7
And I’m looking to end up in Westchester because….? I’m at a loss to explain my own actions.
this is why I laugh when anyone claims there hasn’t been speculation in the NYC metro area. as if speculation can’t occur in owner occupied housing
there is no logical reason for so many people to be spending beyond their means without expectation of future gains.
and if we accept the claim that appreciation is just “leveling off,” this just reveals how truly speculative this market was during the last few years.
how could a “leveling off” of appreciation cause the number of sales to plummit as it has if people had another good reason to buy besides the expectation of wild gains?
I’ve wanted to ask this question for a long time.
What exactly does “boyyyyyyyaaaaaaaaa” mean?
Is that like a war whoop?
Or something like giving someone the raspberries?
One night, a character on the Simpsons yelled boyyyyyyaaaaaaaa ….and it startled me …
Please define :)
http://www.forsalebyowner.com/listing/E6D1A?currentlySearching=1
This house was priced at 282K yesterday. Today it went up by 13K. Well that’s what you stinkin buyers deserve for not buying a very well priced property which has been in the market for over 8 months.
Perhaps they thought that buyers might think there was a problem, because it was so cheap?
jb
How come 2003 data is missing from the chart?
“Well that’s what you stinkin buyers deserve for not buying a very well priced property which has been in the market for over 8 months.”
Why was it on the market for over 8 months, especially if it’s so well priced?? If they can’t sell at 282k what makes you think it will sell at 295K??? Why not raise it to 349K
Not sure, I’ll have to check in the morning, I don’t have a copy of that spreadsheet here.
jb
“Be Really worried grubbers really worried.”
he ….he…
good one
check this out……
http://www.flippernation.com/
video one: the first flip
chicagofinance: Hillarious !!!
Pingback: Anonymous
Pingback: Anonymous