By Jim Hammerand | Puget Sound Business Journal
As home prices continue to soar in the Seattle area, how much do you need to make to afford a home when factoring in interest, taxes and insurance payments?
Median home prices have risen in most major U.S. cities. In a nationwide analysis by HSH.com, only the Hartford, Connecticut, metro area saw a decline in median home values, while all others saw an increase.
In 34 of the 50 markets, gains were 5 percent or more. With little new housing supply, affordability continues to be a problem, the researchers conclude.
Overall, an average salary of $55,390 would pay for a home that averaged $254,000, which is a 5.26 percent increase from 2016. That’s if the homebuyer put a 20 percent down payment — the salary needed increases to $63,941 if only buying with a 10 percent down payment, reports HSH.com.
But good luck finding a home listed for that much in Seattle. At $93,418, the Seattle metro is the seventh-most expensive, followed by Washington, D.C., Portland, Oregon and Denver.
Seattle-area homebuyers who put down 10 percent instead of 20 percent will need to make $109,458 per year, HSH said.
The Seattle region in this study covers the Seattle-Tacoma-Bellevue metropolitan area in King, Snohomish and Pierce counties.
While most markets in the 50 largest U.S. states saw a decline from the second quarter to third quarter of 2017, almost all saw rises in median home prices from this time last year.