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Housing Affordability Best It's Been in Over a Year

August 15, 2019

Both local and national news is filled with tales of a housing affordability crisis these days and while it is true that the prices of new homes are escalating, we must also consider that pricing is not the only thing that matters.  We need to remember to consider the price relative to the buyer’s buying power.  What does that mean?

Let’s take a look at what the website, “Keeping Current” says about the housing affordability “crisis.”

According to the website, homes, in most cases, are 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 major piece of the affordability equation is a buyer’s income. The median family income has risen by 3.5% over the last year.

Let’s look at three different reports issued recently that reveal how homes are very affordable in comparison to historic numbers, and how they have become even more affordable over the past several months.  Click here to read more about these reports.