Lucas County has one of the more affordable housing markets in the nation so far this year, according to a new index released Thursday by real estate data firm RealtyTrac Inc.
The county’s affordability rating this year was 115, which means the typical house is more affordable now than it was at its base year of 2005.
A score of 100 is the based index score, and a figure above it means the house is more affordable now than it was then, and if the figure is below the base, then the house is less affordable.
Daren Blomquist, RealtyTrac senior vice president, said the index is based on the percentage of average wages needed to make monthly house payments on a median-priced home in a market. The index calculates that the home would have a 30-year fixed rate mortgage with 3 percent down payment and includes property taxes and insurance.
“A score of 115 means homes in Lucas County are more affordable than they have been on average,” he said.
For the first 2½ months of this year, the median price of homes is $85,000 in Lucas County, while average wages in the county for third quarter of 2015 (the most recent data available) were $839 per week.
Given that, Mr. Blomquist said, Lucas County residents need to use 15 percent of their wages to buy the median-priced home. The norm over the last 10 years means they would have needed 17.2 percent.
However, while Lucas County housing is affordable, it has been growing less so over the years, according to RealtyTrac, based in Irvine, Calif.
Compared to last year, for example, the median home price in Lucas County grew 13 percent but wages grew just 1 percent.
Historically, Lucas County’s most affordable period was the first quarter of 2012, when its affordability index score reached 200. Back then, the median price was $47,639 and weekly wages averaged $843, according to RealtyTrac.
But over the last four years, the median price jumped 78 percent while wages remained flat. Buyers were aided only slightly by mortgage interest rates that have dropped since 2012.
Elsewhere in the Toledo region, Wood County’s affordability score this year was 112. Buyers there needed 27 percent of their wages to buy a home with a median price of $147,300. Historically, Wood County residents needed 30.2 percent of wages to buy the median home.
In northwest Ohio, Allen County, where Lima is, had a score of 106 with 15.9 percent of wages needed for an $80,500 median home.
In southeast Michigan, Monroe County had a score of 105 with 22.8 percent of wages needed to buy the $130,950 median home there.
Across Ohio, Cuyahoga County (Cleveland) had a score of 142, Franklin County (Columbus) had a score of 115, while Hamilton County (Cincinnati) had a score of 96 with 19.5 percent of wages needed to buy the median home of $138,750. Historically, Cincinnati residents only needed 18.6 percent of their wages to buy the median home but home prices there have gone up 76 percent in three years while wages decreased 5 percent.
Michael Mahon, president of HER Realtors in Columbus, said the rising home prices in Ohio are making things challenging for buyers.
“While sellers are finding rewarding gains in appreciation to start 2016, buyers are oftentimes faced with the heightened frustration of low available inventory, competing in multiple offer situations, and increased lending restrictions denying them the opportunity to make a home purchase,” he said.
Contact Jon Chavez at: jchavez@theblade.com or 419-724-6128.
First Published March 24, 2016, 4:00 a.m.
