In 2006, the housing market in the US experienced a bubble. Now, according to RealtyTrac, homes are significantly more affordable, likely due to low interest rates.
Monthly payments such as property taxes, home insurance, private mortgage insurance and a 3 percent downpayment have gone down. In the first quarter of 2015, these costs on an average-priced home amounted to 36.5% of the average wage. This was down 0.9% from the first quarter of 2014.
According to RealtyTrac, this year is now the most affordable time for homeownership since 2013.
“Although home prices continue to outpace wage growth in the majority of local markets, this analysis somewhat surprisingly shows that affordability is actually improving in most markets thanks to falling interest rates and slowing home price growth, which is allowing wage growth to catch up in some markets,” says Daren Blomquist, vice president at RealtyTrac.
Not only have these monthly expenses gone down over the last few years, but other financial aspects of buying and owning a home have as well. Since the second quarter of 2006, the price of an average home has dropped twelve percent. Also, the average wage has risen 34% nationwide, and the average interest rate on a 30-year fixed-rate mortgage is very low as well, having fallen 44% since 2006. These factors mean that overall, homeownership affordability has fallen 48% since 2006.
The most affordable county according to RealtyTrac is right here in the Sunshine State in Hamilton County, where a low 5.6 percent of the average wage was needed to make the monthly payment on an average-priced home.
It is an incredible time to own home! Affordable homeownership is here, and with low interest rates, increasing employment, and a strong economy, there is no better time than now to own your home.
Take advantage of today by getting the best value out of the amazing properties available to you in Miami today!