Eckhardt Mortgage Bankers

Home prices lead to changes in affordability

According to a recent report from the National Association of Home Builders (NAHB), the affordability of housing on a national scale is decreasing.

Based on reports from the second quarter of 2014, several major markets saw a decrease in affordability due to an increase in home cost. The report, which was put out by the NAHB in conjunction with Wells Fargo Housing Opportunity Index (HOI) showed that 62.6 percent of homes sold between April and June of this year were affordable, based on the median income for U.S. families.

While the average median home price rose from approximately $195,000 to $214,000, according to the NAHB, mortgage rates decreased by approximately .09 percent from the same time last year. Even with home prices increasing, these rates are still at historic lows, making now a great time to invest in property in most any market.

The Motley Fool, a financial-services multimedia company, says that it is still a great time to invest in bank-owned property. While the housing market has returned over the past few years, many properties are still the victims of foreclosure, which means that potential buyers should look to their local city banks if they are looking to buy in their area.

“Perhaps even more importantly though, these local institutions will often be more willing to negotiate with you to lower the price or offer favorable financing to aid in your purchase,” writes Jay Jenkins of The Motley Fool. “Don’t think that just because the real estate crisis peaked over five years ago that deals are no longer out there. Because when it comes to bank owned property, deals are absolutely still available.”

When it comes to financing your dream home, contact Eckhardt Mortgage Bankers for expert advice.

 

Leave a Comment