More than seven million homes will sell this year and nearly every buyer’s search will have started with some variation of question: “How much home can I afford to buy?”.
Home affordability matters and, according to the National Association of REALTORS®, fewer homes are affordable for buyers of homes nationwide.
The data comes from the group’s Realtors® Affordability Distribution Curve and Score report which tracks homes currently listed for sale, and matches their likely monthly payments to the incomes of expected buyers for that home.
This methodology helps the trade group’s tracker account for homes in all markets, at all price points. It’s as effective in high-cost cities such as San Francisco and Los Angeles as in cities where costs are lower, including Chicago and Atlanta.
The most recent report shows affordability down slightly; wage growth has failed to keep up with the pace at which home prices and mortgage rates have climbed.
However, like everything in real estate, “how much home can I afford?” is not a question that’s answered on the national level. It’s answered locally and individually.
What you can afford to buy, living in Seattle, is different from what might fit your budget in Sacramento. And, the same is true for any two city pairs you choose.
Home affordability is unique to you and where you live. Your wages matter and does your home’s sale price, its real estate taxes, its homeowners insurance, and the mortgage rate you get from your lender.
Skip the national stats when it comes to real estate and home affordability. Talk with a local real estate agent. Get help to find a home you can love, with a payment you can like.
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An insurance claim is an official request you make to an insurance company, asking to get paid for damages. Insurance claims can be made for any reason that’s a part of your insurance policy. When you have homeowners insurance, you can make an insurance claim after a fire in your home; after there’s been theft […]