For core-based statistical areas, the west coast usually holds the top 10 spots in the Pro Teck Home Value Forecast, but this month the Durham-Chapel Hill, NC CBSA has been added with regards to positive scores in the categories of affordability and foreclosure rates among others.
In looking at the affordability for how the Durham-Chapel Hill, NC CBSA compares to the other CBSAs on the list, affordability today is at 162, from a high of 209 in 2013 and a low of 124 in 2007.
According to the report, affordability is derived from looking at the median income for a particular area as a ratio to the mortgage payment needed to purchase a median priced home. Additionally, an index score above 100 signifies that a household earning the median income has more than enough income to afford the mortgage while lower scores suggest more income is needed to cover mortgage expenses. The Collateral Analytics Affordability Index used by Home Value Forecast also looks at loan-to-value norms for a particular area to adjust for more affluent buyers usually putting more money down.
In all, this area is more affordable than the average index of 100 for the U.S., making salaries go farther when purchasing a home. Before the crash, affordability topped at 165 and hit bottom at 125 which was a 24.24 percent drop.
In addition to this the report states that with tighter credit policy, the “hot” markets seen currently are mostly based on employment and household income gains. Cities like San Francisco, Dallas and now Durham-Chapel Hill leading the way.
In regards to the foreclosure ratio for Durham-Chapel Hill, percentage state at 5.78 percent with a decrease of 2.86 percent from the previous month. With a ranking of number 3 overall, Durham-Chapel Hill is putting the East Coast back on the map for top CBSAs.