Moving Despite Challenges: Today's Affordability Trends
Are you considering buying or selling a property? Understandably, the current real estate market can seem challenging. With mortgage rates at their highest in recent years and increasing home prices, it's important to stay informed. The attached graph offers a clear comparison of today's housing affordability with that of previous years, helping you make a well-informed decision
The National Association of Realtors (NAR) explains how to read the values on the graph:
“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.”
In the attached graph, the black dotted line marks the standard affordability index at 100. The higher the bar, the more affordable homes are. Currently, the orange bar indicates that rising mortgage rates and home prices have made affordability more challenging. However, this doesn't mean the housing market is inactive.
The National Association of Realtors (NAR) reports that nearly 4 million homes are expected to be sold this year. Let's put this into perspective:
Every day, approximately 10,849 homes are sold.
This translates to around 452 homes sold every hour.
That's about 8 homes sold every minute.
In total, more than 10,000 homes are sold daily nationwide. This data is vital for both buyers and sellers, highlighting that despite tight affordability, opportunities to buy or sell homes are plentiful.
An Agent Can Help You Make Your Move a Reality
Are you curious about how people are successfully buying and selling homes in the current market? A key factor is partnering with a trusted local real estate agent. These skilled professionals are guiding clients through the unique challenges of today's real estate landscape, offering essential advice on affordability and market trends.
A great real estate agent tailors their guidance to your individual requirements, budget, and preferences. They leverage their experience to suggest effective strategies for other buyers and sellers, such as expanding your property search to include different types of homes like condos and townhouses, or exploring neighborhoods a bit further out. This approach can help overcome some of the current market's affordability obstacles.
Bottom Line
You might think there aren’t many people buying or selling homes right now since affordability is tighter than it’s been in quite some time, but that’s not the case. It’s true that buying a home has become more expensive over the past couple of years, but people are still moving.
