You can enjoy many other benefits by buying your home. Today’s headlines focus primarily on the financial aspect of homeownership, specifically affordability. Although many articles claim it is not financially feasible to purchase a home today, this is not the truth.
Buyers today are spending 20% on monthly mortgage payments. From Freddie Mac, the 20% that buyers are currently paying for their mortgage payments is within the recommended 28%.
It’s Not That Homes Are Unaffordable – It’s That They’re Less Affordable.
It’s true that home prices have risen and are now less affordable than ever since the housing crash 15 years ago. These headlines are not false, but they don’t tell the entire story. You need to compare the current situation with historical data in order to get the complete picture. An examination of affordability further back in history reveals that today’s homes are less expensive than at any time between 1975 and 2005.
However, some buyers are being pushed to the sidelines by the chatter about affordability. They aren’t comfortable that someone else got a better deal last year.