Headlines matter. At this time, it is difficult to read about real estate without seeing a headline that suggests houses have become unaffordable for many Americans. In reality, there is hard evidence that reveals the way owning a home is much less expensive than renting in most parts of the nation, as record-low interest rates are keeping monthly mortgage payments roughly 23% lower compared to normal payment of 20 years back. Regardless of the reality, misleading headlines persist, and they impact how optimistic homebuyers perceive the marketplace.
In a current poll from realtor.com, home shoppers suggested they were amazed by what they could actually manage when buying their first home. In reality, 47% discovered their funding was bigger than they expected.
Why do these negative remarks which cast doubt on worth continue to exist?
Most analysts just consider two of those three elements which make up the affordability equation: cost and income. It’s true that incomes have not kept up with all the price of homes. However, affordability is about the price of the house, not only the price. For that reason, mortgage rates, the next part of the cost equation, are all important to consider.
Outside of the home crash (when short sales and foreclosures drove prices down), it is cheaper to get a home now when you consider all three elements of the affordability equation: price, income, and mortgage fee .
Whether you’re a first-time buyer or a move-up buyer, don’t let the headlines frighten you away from the dream of homeownership. Rather, join with mortgage and real estate professionals to ascertain what you can afford and what is available at the price. Like almost half of the buyers at the poll, you may be pleasantly surprised.
If you’ve been thinking of buying or selling but just not quite sure, contact our office to speak with one of our knowledgeable agents to find out what’s going on in the real estate market today.
Text HOMES to 877-965-7775 for all of Stephenville listings.