Affordability of buying a Home is now better than ever! but for how long?
Many economists look to home buying as the way out of a recession. Tracking of the affordability index is a chosen method of some to gage when buyers should buy and all indications is that is now. The index is a matrix of home pricing, wages and interest rates which when combined equate to the lowest level ever. Wages have not fallen markedly since the economic crash of 2008 and inflation is very low; home values are at marked down prices from highs in 2006 and 2007 when the greatest numbers of homes were sold; and interest rates have declined to 2.85% on 15 year loans and 3.5% on 30 loans. All this equates to the best time to buy so what is the hold up?? Well it points to one factor, consumer confidence. Consumers are not sure on when to buy, if their job is secure and other factors.
See the National Association of REALTORS Sept. notice here: http://economistsoutlook.blogs.realtor.org/2012/09/07/latest-housing-affordability-index/
This is the time for Buyers to get grasp on the dream of home ownership. Now is the best time to buy if you have planned to own a home in the next 2 years. All of the factors above are subject to change, especially interest rates but that may not be true for many months. Discounted home values will go up with demand so don’t wait for price increases as those will come. Wages are the individual measure of affordability and how we spend. Put off that flat screen purchase until you can put it in your home, not your landlords. Waiting for the elections to be over? No matter who wins, your best investment is home ownership with the fantastic affordability of 2012.