Check the housing affordability index below for national insights.
If you are considering selling your current home, to either move up to a larger home or into a home in an area that better suits your current family needs, great news was just revealed.
Last week, Trulia posted a blog, Not Your Fathers Housing Market, which examined home affordability over the last 40+ years (1975-2016). Their research revealed that:
Nationally, homes are just about the most affordable theyve been in the last 40 years the median household could afford a home 1.5 times more expensive than the median home price. In 1980, the median household could only afford about 3/4 of the median home price.
Despite relatively stagnant incomes, affordability has grown due to the sharp drop in mortgage rates over the last 30 years from a high of over 16% in the 1980s to under 4% by 2016.
Of the nations 100 largest metros, only Miami became unaffordable between 1990 and 2016. Meanwhile, 22 metros have flipped from being unaffordable to becoming affordable in that same time frame.
Here is a graph showing the Affordability Index compared to the 40-year average:
The graph shows that housing affordability is better now than at any other time in the last forty years, except during the housing crash last decade.
(Remember that during the crash you could purchase distressed properties foreclosures and short sales at 20-50% discounts.)
There is no doubt that with home prices and mortgage rates on the rise, the affordability index will continue to fall. That is why if you are thinking of moving up, you probably shouldnt wait.
What about Seattle?
If you have held off on moving up to your familys dream home because you were hoping to time the market, that time has come. Reach out to your trusted Metropolist broker and get the details you need about our local Seattle real estate market.
For you over-achievers
Consider downloading the latest Metropolist Magazine and go over it together with your goals, wants and needs in mind. #doit