Once again, it seems like it is the best time to buy a home. This happens usually like 2 to 3 times a year, all because mortgage rates are dropping. In this case, below 3 percent for the past two months, making homes more affordable for those who are planning to buy properties in 2019. The details are profound, and show a trend that is having a significant impact all over the U.S.
Let’s start by saying something crucial, recent studies have found that housing affordability is not at its lowest point, in fact the opposite is happening, if you take into account the last 16 months. In other words, our experts believe that the average home price (AHP) will not surpass the $250,000 mark by December, a phenomenon that will benefit thousands of buyers nationwide.
So, on one hand we have properties getting more expensive, but with mortgage rates dampening this increase, it’s easy to think that the purchasing power of most American families will grow, and not by 5, 6 or 7 percent. According to Black Knight (housing data agency), these potential buyers will get an advantage of 15 percent. This means that the possibility of acquiring a pricier home is plausible, while at the same time paying the same amount on mortgages.
Now, we need to talk about 30-year fixed interest rates, as these are shrinking with surprising speed, allowing individuals to take away some of the heavy lifting, leaving them with a home buying process that is easier to handle.
A Broad Perspective
By looking closely at regional markets we’ll find eye-opening numbers. Starting with California, where home prices in communities like San Jose have fallen down to 14 percent, same with the northwestern state of Washington, there we’ve found depreciation of 9 percent, and the list goes on if we add other areas such as Wyoming and North Dakota.
Good news, in order to buy a new home in this ever-changing landscape, Americans only need 22 percent of their monthly income, this way they can cover the costs of a median mortgage payment. In Ohio for example, income-to-payment ratios (or debt-to-income ratios) are at a mere 12 percent, the lowest levels in the whole country.
If things stay this way, we’ll have the best affordability scenario since 1998, nearly 20 years far away. At AFTHA we can make all this home buying process simpler, effective and manageable, there’s no need to go alone when our pool of experts are willing to cut down costs, time and stress out of your life. Want to know how our program works for first-timers? Call now to (833) 295-6128, or write us an email to firstname.lastname@example.org. Always proud to help clients in all 50 states.
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