Even With Record-Low Rates, Most Metros Aren’t Affordable

first_img in Daily Dose, Featured, Market Studies, News Even With Record-Low Rates, Most Metros Aren’t Affordable Share Save Related Articles The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Even With Record-Low Rates, Most Metros Aren’t Affordable 2021-02-12 Christina Hughes Babb  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago February 12, 2021 882 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Veronica Bradley has covered the consumer packaged goods industry, the tech industry, the healthcare industry, and a few other industries that impact people’s daily lives. When she isn’t researching and writing, she moonlights as an amateur accountant and bookkeeper for a small family brewpub, because unlike most writers, she isn’t afraid of numbers. Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Veronica Bradley Previous: The Week Ahead: Mortgage Servicing in Coming Months Next: 4 Hallmarks of an Exceptions SFR Services Provider Interest rates on 30-year mortgages are at historic lows, but that hasn’t helped make homes any more affordable for the average American, according to the Federal Reserve Bank of Atlanta’s Home Ownership Affordability Monitor (HOAM) index.Household incomes have dipped, and home prices have risen all over the country. In fact, the median household income at the end of November was down 5.4% from the same time the year before. And in contrast, the national median home price went up 14.1% in the same amount of time.Yes, rates on fixed 30-year mortgages may have dropped to 2.8% by November’s end, but the financial strain on the average household income and the rise in home prices have erased any positive effects from lower rates, according to the index.In other words, the median-priced home is simply unaffordable to the median-income buyer.However, these are national averages. There are pockets of the country where homes are still affordable, even in populous metro areas.Rochester, New York; Washington’s Spokane-Spokane Valley; and St. Louis, Missouri, all have populations over 500,000 and saw improvements in affordability (7.08 percent, 7.02 percent, and 6.63 percent, respectively). This is due to the lower interest rate and declining home prices.Washington, DC and San Francisco, California, also saw small increases in affordability, because home prices remained stable.To counter those cities, Milwaukee, Wisconsin; the New York metro area; and Cape Coral, Florida, all experienced the biggest drop in affordability (4.15 percent, 2.03 percent, and 1.85 percent, respectively). Home price growth in these areas outpaced any financial perks of lower interest rates. In fact, the median home price in Milwaukee climbed 19.9% over a year’s time, New York’s median price increased 11.9%, and Cape Coral’s price went up 15.9%.So, why have homes priced themselves out of affordability across the country? Supply and demand. There simply aren’t enough homes available for eager buyers, and bidding wars ensued. Those with deeper pockets won, and that drove up the cost of homes around them.December of 2020 saw a 23% drop in inventory, for example, and the supply shortage won’t be fixed in the near future, which means affordability will continue to be a problem for some time. Sign up for DS News Daily Subscribelast_img read more

Lundin picks up drilling permit for Barents Sea wildcat

first_imgThe Norwegian Petroleum Directorate (NPD) has granted Lundin Norway a drilling permit for wildcat well 7220/6-3 in the Barents Sea.Earlier this week, the Norwegian offshore safety body, the Petroleum Safety Authority, granted Lundin consent to drill the 7220/6-3 well using the Ocean Rig-owned Leiv Eiriksson semi-submersible drilling rig.The drilling program under the permit relates to the drilling of a wildcat well in production license 609 where Lundin is the operator with an ownership interest of 40 percent with the licensees being Idemitsu Petroleum Norge with 30 percent and DEA Norge as the holder of the remaining 30 percent interest.According to information provided by the safety regulator, drilling will begin in July and last approx. 34 days, depending on whether a discovery is made.The area in this license consists of blocks or parts of blocks 7220/6, 7220/9, 7220/11, 7220/12, and 7221/4. The well will be drilled about 18 kilometers northwest of the discovery well, 7220/6-2 R, in production license 609.Production license 609 was awarded in the 21st licensing round back in 2011.last_img read more