Everyone knows that housing affordability has been negatively impacted by rising prices and increasing mortgage rates, but there is another piece to the affordability equation – wages.
How much a family earns obviously impacts how easy or difficult it is for them to afford to own a home. Because of an improving economy, wages are finally beginning to increase – and that dramatically affects home affordability.
According to the National Association of Realtors’ (NAR) September 2018 Housing Affordability Index, wages have increased in every region of the country:
After applying current salaries, home prices, and mortgage rates to their Home Affordability Index equation, the index, though still lower than this time last year (160.1 to 146.7), increased over the last month (141.2 to 146.7). For the complete methodology used by NAR, click here.
The percentage of income needed to own a home has also decreased each of the last three months. It currently sits at 17% which is substantially lower than historic numbers.
If you are a first-time buyer or a move-up buyer who believes that purchasing a home is not within your budget, let’s get together to determine if that is still true.
The Happy Home Sellers is a husband and wife working for you! I, Michael L’Heureux and my wife, Josee L’Heureux, both working under Keller Williams Realty, are happy to help you with all your Real Estate needs. With more than 11 years of experience in Real Estate business, we continue to serve our clients better and extend our support to those who are looking to sell homes or move in Southern Maine and New Hampshire.
If you are looking for the right Real estate agent in Maine, contact 207-553-1322 or email email@example.com