With home prices and interest rates increasing, how is home affordability being affected in the market?
Today I’d like to talk about the state of home affordability in the current market and what trends are likely to affect your ability to purchase a home.
The first quarter of this year has seen a drop of about 5% in home affordability. This means that there are buyers out there who are having a problem getting qualified for a loan, due to the increase in interest rates that we’ve been seeing, as well as the increase in home prices.
Buyers are just having a little bit more of a struggle trying to get qualified for loans within certain price points. This is common to see when both prices and rates increase. It’s predicted that we’ll have a 15% to 20% drop in affordability over the next couple of years, so we’ll likely continue to see buyers struggling to get their loans and purchase homes.
It’s not predicted that home prices will come down in the near future, so that makes it a great time to list your property and use your equity to get into something new. If you’re looking to buy, don’t let the market scare you. The increase in rates and prices notwithstanding, it’s still a great time to do so. Though rates are slowly climbing, interest rates are still at all-time lows, so homes should still be affordable for the moment.
If you’re thinking of selling your home, you can visit this page on our website to find out in a broad sense what your home is worth in today’s market. We can get you into contact with our listing specialist if you’d like more detailed information.
"It’s predicted that we’ll have a 15% to 20% drop in affordability over the next couple of years."
If you’re looking to buy a home, click here to look at available homes on our search site. The site updates every 15 minutes, so you know you’re getting current information about what homes are available.
For any questions or topic suggestions you have, feel free to reach out to me. I look forward to hearing from you.