June 05, 2020 at 10:50am | Michael Hunter
There’s a rumor that owning a home today is less affordable than it was in the past. The reason some are talking about  this claim is because house prices have increased over the last several years.
It’s not just the price of a home that matters.
Homes are in most cases purchased with a mortgage. The current mortgage rate is a major component of the affordability equation. Mortgage rates have fallen by over a full percentage point since December 2018. Another huge piece of the affordability equation is a buyer’s income. The median family income has risen by approximately 4% over the last year.
Obviously, affordability was better during the housing crash when distressed properties, foreclosures and short sales sold at major discounts (2008-2015). Outside of that period homes are more affordable today than any other year since 1990, not including 2016.
If you’re thinking about buying your first home or moving up to the home of your dreams, don’t let the false narrative about affordable homes prevent you from moving forward. From an affordability standpoint, this is one of the best times to buy in the last 25 years.



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