Moving Up Is More Affordable NOW

Dated: 03/20/2018

Views: 28

Moving Up Is MORE Affordable Now Than Almost Any Other Time In 40 Years

Moving up Is MORE Affordable Now Than Almost Any Other Time in 40 Years

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 Father’s 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 they’ve 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 nation’s 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:

Moving up Is MORE Affordable Now Than Almost Any Other Time in 40 Years | Keeping Current Matters

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 shouldn’t wait.

Bottom Line

If you have held off on moving up to your family’s dream home because you were hoping to time the market, that time has come.

Blog author image

Angela Johnson

Angela Johnson, REALTOR, began her career in real estate in 2008 with a goal to motivate and educate others in the industry. Since then, her passion has allowed her many roles serving fellow REALTORS,....

Want to Advertise on this Site?

Latest Blog Posts

Oct 15 2018 57328 2

Houston ranks among 10 U.S. cities with most foreign-born homeownersA new study shows that immigrants play a big part in Houston's housing market. Photo courtesy of HARHoustonians already enjoy

Read More

Oct 15 2018 57328 1

Where Houston lands among best and worst real estate markets in the U.S.North Texas cities outshine Houston on this report.iStockTexas may be home to America's hottest housing markets, but Houston

Read More

Aug 30 2018 57328 1

Houston home foreclosure starts on the rise, according to alarming new reportThe Houston area saw a 76 percent spike in foreclosures in July.Photo courtesy of HARHouston, it looks like we might have

Read More

Jul 31 2018 57328 2

MONEYMATTERSThis Houston neighborhood boasted the biggest profits for sellers in 2017Lazybrook/Timbergrove sellers made big bucks in 2017.Photo courtesy of ZillowHouston homeowners who sold their

Read More