New Report on Home Affordability Shows Many Monthly Payments of Less than $1,000

 

05/12/2014

BROOKFIELD, Wis. – A new way of looking at the local housing market – by the size of monthly home payments instead of just sale prices – shows that most municipalities offer homes that can be owned for a monthly payment of less than $1,000. Right now, area Realtors say, the challenge for home shoppers is often more about availability than affordability.

In collaboration with the Greater Milwaukee Association of REALTORS® (GMAR), North Shore Bank is producing the new quarterly report.

“This report gives people a new way to view the housing market when they start to think about either purchasing their first home or buying a different home,” said Mike Kellman, senior vice president of consumer lending at North Shore Bank. “In the past, the only information they could look at to get a feel for pricing was home sale figures. This report makes it possible for people to take the amount they can afford to pay per month and look at what that amount will get them in different parts of the metro area. In fact, it goes beyond that to give them a good picture of what it will get them in different areas of the same municipality.”
 
Realtor Betsy Head, chair-elect of the Greater Milwaukee Association of Realtors added, “The North Shore Bank / GMAR Home Affordability Report is a great new tool. It will give home shoppers a head start in establishing realistic expectations and zeroing in on where in the metro area they want to focus their search.”
The report uses MLS data to track the current average monthly payment (principal, interest, and property taxes) for homes that were purchased in three price ranges -- lower-end, middle-market and upper-end – during the previous quarter in communities within the metro area where enough recent home sales took place to compute reliable averages.

Figures are based on 1) the median selling price of homes sold during the previous three months in each of the three price ranges; 2) the current average interest rate on a 30-year, fixed rate mortgage; and 3) the property tax rate in the featured community

The analysis assumes a 20% down payment, which eliminates the need for mortgage insurance and results in a smaller monthly payment than lesser down payments.

The geographic areas tracked include the following zip codes: Milwaukee NW (53218, 53222, 53223, 53224, 53225), Milwaukee SE (53204, 53207, 53215, 53221, 53235), Milwaukee East (53202, 53203, 53211), Milwaukee WC (53205, 53208, 53210, 53213. 53214, 53216, 53226, 53233), Milwaukee NE (53206, 53209, 53212), Milwaukee SW (53219, 53220, 53227, 53228). The full report is available online at northshorebank.com/housingaffordabilityguide.

  Lowest Third Middle Third Highest Third
  Sales Price Monthly Payment Sales Price Monthly Payment Sales Price Monthly Payment
MILWAUKEE NW $22,000 $217 $49,900 $415 $105,000 $732
MILWAUKEE SE $37,000 $324 $97,000 $678 $170,000 $1,091
MILWAUKEE EAST $143,000 $902 $218,800 $1,393 $424,000 $2,637
MILWAUKEE WEST $15,750 $192 $46,500 $389 $127,000 $837
MILWAUKEE WC $9,500 $155 $31,500 $324 $162,450 $1,154
MILWAUKEE SW $76,200 $573 $124,000 $810 $150,000 $973
WAUKESHA $111,000 $647 $195,000 $1,085 $281,500 $1,556
WEST ALLIS $48,100 $435 $93,000 $659 $126,750 $852
WAUWATOSA $150,000 $928 $201,000 $1,199 $267,750 $1,588
BROOKFIELD $174,350 $957 $240,500 $1,290 $340,000 $1,849
FRANKLIN $117,000 $743 $205,000 $1,221 $295,000 $1,752
WEST BEND $66,500 $417 $134,200 $785 $240,000 $1,318
MENOMONEE FALLS $118,950 $683 $210,000 $1,135 $385,000 $2,036
OCONOMOWOC $116,250 $613 $194,500 $1,034 $336,950 $1,746
GREENFIELD $63,250 $424 $119,700 $787 $169,800 $1,055
PEWAUKEE $110,750 $610 $154,000 $821 $279,200 $1,554
NEW BERLIN $153,750 $858 $216,500 $1,177 $335,000 $1,811
MEQUON $210,000 $1,139 $330,000 $1,753 $525,000 $2,736
GERMANTOWN $150,000 $599 $251,450 $1,291 $354,500 $1,851
OAK CREEK $86,250 $564 $189,750 $1,113 $247,500 $1,449
HARTFORD $94,500 $571 $141,500 $811 $210,000 $1,158
MUSKEGO $125,000 $679 $215,000 $1,185 $376,000 $2,058
PORT WASHINGTON $125,750 $550 $170,000 $906 $244,500 $1,268
GLENDALE $40,000 $340 $123,000 $817 $214,950 $1,363
CEDARBURG $165,000 $919 $245,450 $1,319 $396,200 $2,183
WHITEFISH BAY $185,000 $1,154 $270,500 $1,670 $540,500 $2,994
MUKWONAGO $148,600 $811 $208,500 $1,093 $264,450 $1,423
CUDAHY $73,255 $555 $109,700 $760 $137,400 $900
GRAFTON $144,000 $808 $186,900 $1,049 $387,500 $2,021
SOUTH MILWAUKEE $54,000 $464 $95,000 $667 $156,750 $1,037

Source: MLS home sales data, municipal property tax data, prevailing interest rate data
Note:  These monthly payments include cost of principal repayment, interest and property taxes for the median-price home in the low-end, middle and high-end price ranges within each community. 


North Shore Bank, headquartered in Brookfield, is one of the strongest banks in the country. It has assets of over $1.7 billion and 47 offices throughout eastern Wisconsin, and northern Illinois. Wisconsin branch locations are in metro Milwaukee, Ozaukee County, Racine, Kenosha, Appleton, Menasha, the Green Bay area, Burlington, Union Grove, Muskego, and Door County. Locate a North Shore Bank office. You can also connect with North Shore Bank on Facebook, Twitter and Pinterest.

The Greater Milwaukee Association of REALTORS®, originally founded in 1891, promotes the interests of its 4,000 members among consumers and policy makers and in the increasingly competitive real estate marketplace.

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