Wanting to buy a home? You can Afford it!

July 16, 2021

The current housing market this year has made so many people scared to attempt to purchase a home. But I am here to give you some good news! If you are thinking or wanting to buy a home, you can afford it! Homes on the market are still affordable. As we all know the pandemic really made us all realize the importance and value of a home. I think we all have a newfound appreciation for the place we call home. Some people have also realized that their home is not ideal for them anymore due to changes caused by the pandemic. While the world is slowly getting back to normal now you may still be thinking about buying a larger or different home. Understanding housing affordability and some main market factors will help you narrow down your search and find the perfect home for you and your price point.

What are the three factors that go into figuring up housing affordability you may ask? Well according to the real estate professionals at Keeping Current Matters and the NAR (National Association of Realtors) they are: 
1) Mortgage rates
2) Mortgage payments as a percentage of income
3) Home prices
According to the NAR, this index calculation “…measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.”

Basically, the higher the index the more affordable the homes are in the current market. Based on a chart by Keeping Current Matters, the housing affordability is currently at about 174. This is the highest it has been since the housing market crash ended. During that time foreclosures and short sales were the bulk of the market and those homes were being sold at record discounts not seen in almost 100 years. 

So, what is the biggest reason homes are so affordable today? The main factor causing them to be this way currently is the mortgage rates. The mortgage rates we are currently seeing in the market are a record, historic low. This is a huge factor to consider whether to go ahead and purchase or wait. Buying a home with these types of mortgage rates will likely save you a great deal of money over the life of the loan. So, this makes your dream home even more obtainable and now the perfect time to let me help you find it. Bottom line is this, if you are ready to buy a home, this summer is the perfect time to do it and get not only the home of your dreams but at a much more affordable price than in many many years. This market is ever changing though and mortgage rates may not stay low forever. So don’t wait, call me today and let me get started working for you; I want to be your realtor!

 

Alicia Edwards - Realtor

I want to be your realtor! Let me help you find your next home or sell your current one. Call me and let me get started working for you today (678) 622-0302. I look forward to talking to you soon. Your Home, Your Future, My Commitment!

Looking to Buy or Sell, Contact Me!

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