It’s the never-ending debate among those considering buying their first home –does it make sense financially? Can we “afford” it? Should we wait another year and rent? The fact is, in today’s economy and market, buying a home is more affordable today than it was last year.
The National Association of Realtors keeps a constant track on home affordability since the report“…measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.”
Reason Number One Buying a Home is Affordable Today
According to their latest report, looking at home affordability between 1990 and today, their data shows that homes are more affordable today than any other time other than those that immediately followed the housing crisis. Those home prices were highly affected by the foreclosure market, reducing home prices significantly, but it is a false read. If it weren’t for the rapid increase in foreclosures and defunct mortgage loans, home values would have stabilized more quickly.
So, reason number one if buying a home is the affordable choice for you comes from these stats.
Second Reason a Home Purchase is Affordable
A stable housing market and growing economy mean increases in costs, that includes increases in rent as well. While it is often considered the “more affordable” option, with new jersey rent averages for one bedroom apartments ending 2017around $1,284a month, the potential of affordability for first-time home buyers decreases.
Renting doesn’t offer an “end result” of equity for the money spent, and with a yearly expenditure for rent-alone of more than $15,400 a year, the investment into a starter home that would cost about the same for the mortgage loan becomes a lot more realistic.
Working with a skilled, local real estate and mortgage partner will give you the local market data and edge to make the best home purchase this year. Take advantage of still-low mortgage ratesand get started today!