How Your Texas REALTOR® Can Keep You From Making Rookie Homebuyer MistakesOctober 16, 2018, | TAR Staff Picture a home with a shady backyard overflowing with blooming flowers, chirping birds, and a
Homes Are More Affordable In 44 Out Of 50 States
With both home prices and mortgage rates increasing this year, many are concerned about a family’s ability to purchase a major part of the American Dream – its own home. However, if we compare housing affordability today to the average affordability prior to the housing boom and bust, we are in much better shape than most believe.
In Black Knight’s latest monthly Mortgage Monitor, they revealed that in the vast majority of the country, it is actually more affordable to purchase a home today than it was between 1995 to 2003 when looking at mortgage payments (determined by price and interest rate) as compared to incomes. Home prices are up compared to 1995-2003, but mortgage rates are still much lower now than at that time. Today, they stand at about 4.5%. Here are the average mortgage rates for each of the years mentioned:
1995 – 7.93%
1996 – 7.81%
1997 – 7.6%
1998 – 6.94%
1999 – 7.44%
2000 – 8.05%
2001 – 6.97%
2002 – 6.54%
2003 – 5.83%
On the other hand, wages have risen over the last twenty years.
Black Knight’s research revealed that, when comparing “the share of median income required to buy the median-priced home” today, to the average between 1995 to 2003, it is currently more affordable to purchase a home in 44 of 50 states.
Here is a state map of the percentage change in the price-to-payment ratio. Positive numbers indicate that it is less affordable to buy while negative numbers indicate that it is more affordable.
With my expertise in reality for both buying or selling a home in San Antonio, and surrounding areas. You have found the right resource for your real estate needs. Whether you are looking for a new ho....
Latest Blog Posts
How the Housing Market is Impacted by Natural DisastersHow the Housing Market is Impacted by Natural DisastersOctober 18th, 2018Just like most other things, natural disasters can impact the housing
Is the Increase in Inventory a Bullish or Bearish Sign for Real Estate? Thursday, October 18th, 2018 First Time Home Buyers, For Buyers, Housing Market Updates, Move-Up