Let’s get some answers…
- Soaring home prices along with high interest rates and low inventory have contributed to an affordability crisis throughout the country. Yet, according to data from First American Financial Corp, these outsized home prices are still within the median buying power of residents in Philadelphia. This is good news.
- First American looked at market affordability by comparing median home prices with median buying power (what a buyer can afford to pay based on median income). In Greater Philadelphia, the typical home price falls below the median buying power. According to the data, the median home value is $309,000 and the average buyer can afford to pay $445,600.
- This $135,700 gap is the second largest negative difference between buying power and the median sale price of the 50 largest metro areas.
