Now is an opportune time for buyers! Whether you’re looking to upsize, buy your first home, or invest in real estate, home affordability has never been higher. One factor is the incredibly low interest rates which dropped to an all-time low in 2012.
30 Year Fixed Mortgage Rates
According to the latest information from the National Association of Realtors (NAR), the percentage of the median family income required for the median price home payment is at an all-time low of 12.9%, a drop from 23.2% in 2005! That leaves a lot more money for family, fun, and investing.
Percentage of the Median Family Income Required for Median Price Home Payment
Let’s take a look at where we’ve come from. The price of an average car has nearly doubled in the past 23 years, while the cost of bread and gas per gallon have over tripled in price!
Affordability in Perspective
In the mean time, the median home price has risen by 88% while the monthly payment include mortgage and insurance remains at nearly the same level compared to 1989. When it sometimes seems like the price of everything else has skyrocketed, it’s relieving to know that one of the most important things, your home, remains affordable.
Home Affordability (with 20% Down)
1989
|
2012
| |
| Median Home Price |
$94,000
|
$176,600
|
| Mortgage Rate |
10%
|
3.6%
|
| Monthly P&I Payment |
$660
|
$642
|
As always, if you’re looking for the latest trends and market information, contact us today! Our team is always gathering the most up-to-date information and putting it to work for our clients. We look forward to helping you!
Rahul and Smitha Ramchandani are a licensed real estate Broker-Salesperson/Sales Representative Team with Keller Williams in New Jersey. They are Buyer Specialists and a Home Marketing Experts. You can reach Smitha and Rahul and their team online at: http://www.Morris-Homes.com, http://www.SRRealEstateGroup.com, and http://www.TheTownhouseExpert.com.
Their team specialize in North Central New Jersey including towns such as Boonton, Chatham, Chester, Convent Station,Denville, East Hanover,Florham Park, Hanover, Harding Twp., Mendham, Montville, Morristown, Morris Plains,Morris Twp., Mountain Lakes, Parsippany, Randolph,Rockaway, Whippany
