top of page
Search

The Truth About Housing Affordability

  • Weesner Realty Team!
  • Nov 11, 2016
  • 2 min read

From a purely economic perspective, this is one of the best times in American history to buy a home. Black Night Financial Services discusses this in their most recent Monthly Mortgage Monitor.

Here are two of the report's revelations:

  1. The average U.S. home value increased by $13,500 from last year, but low interest rates have kept the monthly principal & interest payment needed to purchase a median-priced home almost equal to one year ago.

  2. Home affordability still remains favorable compared to long-term historic norms.

The report explains:

"Even though the value of the average home in the U.S. increased by about $13,500 over the last year, thanks to declining interest rates it actually costs almost exactly the same in principal and interest each month to purchase as it did this time last year.

Even taking into account the fact that affordability can vary - sometimes significantly - across the country based upon the different rates of home price appreciation we're seeing, that's a pretty incredible balancing act between interest rates and home prices at the national level...

Right now, it takes 20 percent of the median monthly income to cover monthly payments on the median-priced home, which is well below historical norms."

However, the report warns that affordability will be dramatically impacted by an increase in mortgage rates.

"A half-point increase in interest rates would be equivalent to a $17,000 jump in the average home price, and bring that ratio to 21.5 percent. This increase is still below historical norms, but puts more pressure on homebuyers."

Bottom Line

If you are ready and willing to purchase a home of your own, let's get together to find out if you are able to. Now is a great time to jump in.


 
 
 

Comments


Featured Posts
Recent Posts
Archive
Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

 859-621-4221

Lexington Ky Real Estate Pros, The Real Estate Agency Weesner Realty Team are one of the highest-rated local groups on Zillow. With a company focus on Web, Mobile, Social plus a premium listing on realtor.com, Trulia and Zillow, the Weesner Realty Team is Lexington Kentucky's Real Estate Group. The best Lexington Ky Real Estate company with the pulse on the Lexington Ky Real Estate market. Top real estate agents rated highly on Zillow in the Lexington Ky Real Estate market. If you are looking for an agent or company in Lexington, The Weesner Team should be a great fit. With the Weesner Agent/Brokers we can evaluate recent foreclosures, for sale by owner in Lexington Ky, and off-market listings. We have relationships when it comes to real estate agencies,real estate agents, real estate appraisers, real estate consultants, real estate developers, and commercial real estate needs. We are the real estate broker/agency for Lexington Ky Real Estate

bottom of page