Real Estate, Updates, News & Tips

Household debt levels have reached a record high of $13.5 trillion this year, according to the Federal Reserve Bank of New York. Many of these financial woes are from housing. “Escalating rises in real estate prices are causing more consumers to be stretched,” Eric Tyson, co-author of Mortgages for Dummies, told realtor.com®. “In the years ahead, we could reach the point where it really puts a lid on future price appreciation.” Realtor.com®’s research team analyzed the 200 largest metro areas to find where home buyers are the deepest in debt by looking at debt-to-income ratios. Places, where homeowners face high levels of debt, can constrain buyers and potentially slow appreciation, according to realtor.com®. The following markets have homeowners with the highest amount of debt: 1. Honolulu

• Median list price: $692,600
• Median mortgage borrower's debt-to-income ratio: 45.1%

2. Riverside, Calif.

• Median list price: $389,900
• Median mortgage borrower's debt-to-income ratio: 43.4%

3. Cape Coral, Fla.

• Median list price: $299,000
• Median mortgage borrower's debt-to-income ratio: 43%

4. Lakeland, Fla.

• Median list price: $225,000
• Median mortgage borrower's debt-to-income ratio: 43%

5. El Paso, Texas

• Median list price: $174,000
• Median mortgage borrower's debt-to-income ratio: 43%

On the other hand, lower debt levels among homeowners could be a sign that a housing market still has plenty of room to grow, according to realtor.com®. Researchers found the following markets have home buyers with the lowest amounts of debt: Huntsville, Ala.

• Median list price: $259,100
• Median mortgage borrower's debt-to-income ratio: 33.6%

Ann Arbor, Mich.

• Median list price: $356,500
• Median mortgage borrower's debt-to-income ratio: 33.7%

Fayetteville, Ark.

• Median list price: $275,700
• Median mortgage borrower's debt-to-income ratio: 34.2%