For the past several months (even years!) we’ve been inundated with the media’s spin on the housing market. But in the midst of it all, there is one fact that has been greatly overshadowed—Homes have never been more affordable than they are today!

Lawrence Yun, Chief Economist for the National Association of Realtors had this to say: “Home buyers over the past year got a great deal, and buyers for the balance of this year (2010) have an edge over sellers. Affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates.”

In other words, housing affordability is at a great place— Housing affordability is measured by the median mortgage payment on the current median priced home ($182,400) as a percentage of the median household income ($64,400). And it is currently lower than it’s been in a generation. 

And yes, part of homeownership becoming so incredibly affordable is due to the rock bottom mortgage rates! 

Numbers aside, owning a home is still at the core of the American Dream. A recent Fannie Mae study shows that the majority of Americans still want to own a home. Owning a home is important in regards to financial stability and wealth building. A home serves as a forced savings account and provides a solid asset, as well as a place to live.

But for each of us, as individual homebuyers, there are really only a few questions that matter:

  • Can I afford this home?
  • Is it a good investment?
  • Does it meet my family’s needs?

There is a strategy to buying a home, and we’re honored to help clients create the one that works best for them. No two strategic home buying plans are ever the same—give us a call if we can help you with yours!

Committed to helping you Buy. Sell. Live. SMART,

Seth & Alyce

*Thanks to our friends at KWR for the data and research!