{"id":1467,"date":"2021-02-11T23:01:48","date_gmt":"2021-02-11T23:01:48","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1467"},"modified":"2021-02-11T23:01:48","modified_gmt":"2021-02-11T23:01:48","slug":"47-new-buyers-surprised-affordable-homes-today","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/47-new-buyers-surprised-affordable-homes-today\/","title":{"rendered":"47% of New Buyers Surprised by How Affordable Homes Are Today"},"content":{"rendered":"
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47% of New Buyers Surprised by How Affordable Homes Are Today<\/p><\/div>\n

Headlines matter. Right now, it\u2019s hard to read about real estate without seeing a headline that suggests homes have become unaffordable for most Americans. In reality, there\u2019s hard evidence that shows how owning a home is more affordable than\u00a0renting<\/a>\u00a0in most parts of the country, as record-low interest rates are keeping monthly mortgage payments about 23%\u00a0lower<\/a>\u00a0than the typical payment of 20 years ago. Despite the facts, misleading headlines persist, and they impact how hopeful homebuyers perceive the market.<\/p>\n

In a recent\u00a0survey<\/a>\u00a0by\u00a0realtor.com<\/em>, home shoppers indicated they were surprised by what they could actually afford when buying their first home. In fact, 47% discovered their budget was larger than they expected. George Ratiu,\u00a0Senior Economist<\/em>\u00a0at\u00a0realtor.com<\/em>, explains:<\/p>\n

\u201cFor first-time buyers, especially, the drop in the 30-year mortgage rate\u2026has provided unexpected leverage. Lower rates allowed many buyers to stretch and buy more expensive homes while keeping their monthly budget the same.\u201d<\/em><\/p><\/blockquote>\n

So why do these negative headlines that cast doubt on affordability continue to exist?<\/strong><\/h4>\n

Most analysts only look at two of the three elements that make up the affordability equation:\u00a0price<\/strong>\u00a0and\u00a0income<\/strong>. It\u2019s true that incomes haven\u2019t kept up with the\u00a0price<\/em>\u00a0of houses. However,\u00a0affordability<\/a>\u00a0is about the\u00a0cost<\/em>\u00a0of the home, not just the price. For that reason,\u00a0mortgage rates<\/strong>, the third element of the affordability equation, are important to consider.<\/p>\n

For example, here\u2019s the\u00a0typical mortgage payment<\/em>\u00a0for assorted dates going back to 2000, as calculated by\u00a0CoreLogic<\/em><\/a>:<\/p>\n

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National Homebuyers Typical Mortgage Payments<\/p><\/div>\n

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Outside of the housing crash (when short sales and foreclosures drove prices down), it\u2019s more affordable to buy a home today when you consider all three elements of the affordability equation:\u00a0price, income,<\/strong>\u00a0and mortgage rate<\/strong>.<\/p>\n

Bottom Line<\/strong><\/h3>\n

Whether you\u2019re a first-time buyer or a move-up buyer, don\u2019t let the headlines scare you away from your dream of homeownership. Instead, connect with mortgage and real estate professionals to determine what you can afford and what\u2019s available at that price. Like almost half of the buyers in the survey, you may be pleasantly surprised.<\/p>\n<\/div>\n<\/div>\n<\/article>\n

 <\/p>\n

Contact us:<\/strong>
\nPHP Houses
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\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

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THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

For first-time buyers, especially, the drop in the 30-year mortgage rate\u2026has provided unexpected leverage. Finish Reading 47% of New Buyers Surprised by How Affordable Homes Are Today<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[36,69],"tags":[82,38,92,10,18,130,27,86,52,32,83,25,217,40,116,63,20,12,24,48,13,47,19,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1467"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1467"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1467\/revisions"}],"predecessor-version":[{"id":1470,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1467\/revisions\/1470"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1467"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1467"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1467"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}