 The National
Association of Realtors (NAR) recently released their July
edition of the Housing
Affordability Index. The index measures whether or not a
typical family earns enough income to qualify for a mortgage loan on a
typical home at the national level based on the most recent price and income
data. NAR looks at the monthly mortgage payment (principal & interest)
which is determined by the median sales price and mortgage interest rate at
the time. With that information, NAR calculates the income necessary for a
family to qualify for that mortgage amount (based on a 25% qualifying ratio for monthly housing
expense to gross monthly income and a 20% down payment). Here is a graph of the income needed to buy a median priced home in the country over the last several years: And the income requirement has accelerated even more dramatically this year as prices have risen:
Bottom Line
Some buyers may be waiting to save up a larger down
payment. Others may be waiting for a promotion and more money.
Just realize that, while you are waiting, the requirements are also changing.
David Demangos 858.232.8410 Locally Known, Globally Connected Luxury Home Marketing Specialist Global Property Specialist David@AwesomeSanDiegoRealEstate.com www.AwesomeSanDiegoRealEstate.com Our Team Goes to Extremes to Fulfill Your Real Estate Dreams! |
