Buying a home is an exciting experience, but it can feel a bit overwhelming if you don’t have the right information. Check out these helpful resources about the home buying process. When you’re ready, give Team Garcia NYC a call at 646-779-7200 to tour available homes in the Queens County, Brooklyn, East Elmhurst , Laurelton and Valley Stream areas.
Team Garcia NYC wants to help you understand the buying process.
1. Home Prices
The most recent Home Price Insights report by CoreLogic shows home values have increased by 19.1% from last January to this January. That was one reason affordability declined over the past year.
2. Mortgage Rates
While the current global uncertainty makes it difficult to project mortgage rates, we do know current rates are almost one full percentage point higher than they were last year. According to Freddie Mac, the average monthly rate for last February was 2.81%. This February it was 3.76%. That increase in the mortgage rate also contributes to homes being less affordable than they were last year.
3. Wages
The one big, positive component in the affordability equation is an increase in American wages. In a recent article by RealtyTrac, Peter Miller addresses that point:
“Prices are up, but what about wages? ADP reports that job holder incomes increased 5.9% last year but rose 8.0% for those who switched employers. In effect, some of the higher cost to buy a home has been offset by more cash income.”
The National Association of Realtors (NAR) also recently released information that looks at income and affordability. The NAR data provides a comparison of the current median family income versus the qualifying income for a median-priced home in each region of the country. Here’s a graph of their findings:
Key Factors That Impact Affordability Today | Keeping Current Matters
As the graph shows, the median family income (shown in blue on the graph) is greater than the qualifying income needed to buy a median-priced home (shown in green on the graph) in all four regions of the country. While those figures may vary in certain locations within each region, it’s important to note that, in most of the country, homes are still affordable.
So, when you think about affordability, remember that the picture includes more than just home prices and mortgage rates. When prices rise and rates rise, it does impact affordability, and experts project both of those things will climb in the months ahead. That’s why it’s less affordable to buy a home than it was over the past two years when prices and rates were lower than they are today. But wages need to be factored into affordability as well. Because wages have been rising, they’re a big reason that, while less affordable, homes are not unaffordable today.
Bottom Line
To find out more about affordability in your local area, reach out to a trusted real estate professional. They can help you understand where home prices are locally, what’s happening with mortgage rates, and can connect you with a lender so you’re able to make an informed financial decision. Remember, while less affordable, homes are not unaffordable, which still gives you an opportunity to buy today.
Get the KCM Real Estate Blog
Subscribe
Members: Sign in now to set up your Personalized Posts & start sharing today!
Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized Posts.
« How Global Uncertainty Is Impacting Mortgage Rates
MARCH 9, 2022/0 COMMENTS/BY KCM CREW
TAGS: CONTENT HUB
You might also like
Why Waiting To Sell Your House Could Cost You a Small Fortune | Keeping Current Matters Why Waiting To Sell Your House Could Cost You a Small Fortune
If You’re a Buyer, Is Offering Asking Price Enough? | Keeping Current Matters If You’re a Buyer, Is Offering Asking Price Enough?
The Main Key To Understanding the Rise in Mortgage Rates | Keeping Current Matters The Main Key To Understanding the Rise in Mortgage Rates
Homeowner Equity Increases an Astonishing $1 Trillion | Keeping Current Matters Homeowner Equity Increases an Astonishing $1 Trillion
Just How Strong Is the Housing Recovery? | Keeping Current Matters Just How Strong Is the Housing Recovery?
Two Reasons Why Waiting a Year To Buy Could Cost You | Keeping Current Matters Two Reasons Why Waiting a Year To Buy Could Cost You
0
REPLIES
Leave a Reply
Want to join the discussion?
Feel free to contribute!
Name *
Email *
LANGUAGE:
English Español
GET THE LATEST
REAL ESTATE INSIGHTS
DELIVERED TO
YOUR INBOX
Send Me These Posts!
FREE daily articles powered by the latest housing data help you to simplify the market for your clients.
Queens locales, led by Briarwood, among the cheapest: StreetEasy Want to get the most space for your dollar in New York City? Queens is your best bet. StreetEasy analyzed the asking price per square foot in the borough, as well as in Manhattan and Brooklyn. It found the median asking price per square foot in Queens
Whether you’re a homebuyer, seller, or both, knowledge truly is power. Connect with a trusted real estate professional so you can better understand what’s happening in your local market and achieve your homebuying and selling goals this year.
Some Highlights Even in today’s sellers’ market, there are still ways for buyers to win big. Build a team of trusted professionals and make strategic plays as you budget and pick your desired neighborhoods. Then, be ready for the competition by getting a pre-approval letter and leaning on your expert advisors to draft a winning offer. In a sellers’ market,
Some Highlights Buying a home and wondering if your inspection is necessary? While some buyers may decide to waive their inspection, it’s risky decision. Your home inspection is a crucial step in the homebuying process. It assesses the condition of the home you plan to purchase, so you can avoid costly surprises down the road. Work with an agent so you have expert advice and a
If your goal is to purchase a home this year, you might be looking for any advantage you can get in today’s sellers’ market. While competition is still fierce for homebuyers, there are ways you can win and secure the home of your dreams, even in a hot market.
you’re following along with the news today, you’re probably hearing a lot about record-breaking home prices, rising consumer costs, supply chain constraints, and more.
