According to the National Association of Realtors’ housing affordability index, housing affordability will be at its highest in a generation this year. The affordability index is comprised of median home prices, median family income, and the prevailing mortgage rate. An index of 100 implies that a median income family has just enough income to buy a median priced home. An index of 120 implies that a median income family has 20 percent more income than is necessary to buy a median priced home. The index reached an all-time high (since the data creation in 1970) of 174 in 2010. This year, it looks to surpass 180.
2. Buyer’s Market
Demand is low; supply is high. With so much selection, you’ll find more properties in good school districts or near your job, or homes that offer added value. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. Take your time looking, but once you find a home at the right price, don’t hesitate.
3. Low Mortgage Rates
Mortgages are cheap. You can get a 30-year loan for around 4.3%! As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won’t see these mortgage rates again in your lifetime.
Pride of ownership. You can have the kitchen and bathrooms you want, paint the walls any color you desire, turn up the volume on your stereo, and decorate your home according to your own taste. Few landlords are so indulgent. Home ownership gives you and your family a sense of stability and security. You’ll feel better about your own place if you own it than if you rent.
If you are interested in obtaining information on buying a home, or just have some questions about St. Louis Real Estate in general, contact me at DanBrassil.com.