Purchasing Power Is Best in These Cities

Nationally, homebuyer purchasing power is diminishing in the face of sustained, rising prices, demand, and mortgage rates. New analysis found 12 cities with the best market purchasing power.

Using data from First American's Real Home Price Index (RHPI) which measures home price changes along with local wages and mortgage rates, National Mortgage News found that Pittsburgh is the city with the best purchasing power, with a median sale price of $148,000, and the smallest YOY change in RHPI at -1.24 percent to 65.23 overall. Other major cities with the best purchasing power include Chicago, Washington, D.C., Baltimore, Memphis, Tenn., and Portland, Ore.

Nationwide, demand for housing continues to far outpace low levels of inventory, driving prices sky-high and beyond peaks set during the last housing boom. Growth in mortgage rates, expected to continue to rise throughout the year, has also added burdens for homebuyers in terms of how much they can afford to buy. However, a strengthened economy has paved the way for job and income increases, putting more money in the pockets of consumers. In cities with lower median house values and steadying price growth, purchasing power is not in as much danger as other more costly markets.

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