If you’re planning to buy or sell a home, you might have heard that it’s a bit challenging at the moment. This is because the rates for home loans are higher than they’ve been in the last few years, and the prices of homes are going up. The graph below shows how the current affordability compares to the past few years.
The National Association of Realtors (NAR) explains how to understand the values on the graph:
“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.”
The black dotted line on the graph represents that 100 value. In simple terms, the higher the bar, the more affordable homes are. The orange bar for today indicates that higher mortgage rates and home prices have made affordability a challenge.
However, despite the tighter affordability, the housing market is not at a standstill. According to NAR, based on the current pace of sales, almost 4 million homes will sell this year. Let’s break down what this means:
- 3.96 million homes divided by 365 days in a year = 10,849 houses sell each day
- 10,849 divided by 24 hours in a day = 452 houses sell per hour
- 452 divided by 60 minutes in an hour = about 8 houses sell each minute
On average, over 10,000 homes sell each day in the country. Whether you’re a buyer or a seller, this shows that there are still opportunities to make your move, even when affordability is a bit tight.
An Agent Can Help You Make Your Move a Reality
You might be wondering how other people are successfully buying and selling homes in today’s market. One significant factor making a difference is partnering with a reliable local real estate agent. These skilled agents are assisting individuals like you in navigating the current real estate landscape and affordability challenges, providing valuable insights.A good agent can give personalized advice based on your specific preferences, needs, and budget. They can also share their experience and knowledge about what strategies are effective for buyers and sellers right now.
For instance, they might suggest expanding your search to include different housing options like condos or townhouses, or exploring neighborhoods slightly farther away to address affordability concerns. Working with a professional can make the process smoother and more tailored to your unique situation.
Bottom Line
You might assume that not many people are buying or selling homes right now due to the tighter affordability compared to previous times. However, that’s not the case. While it’s true that buying a home has become more expensive in the last couple of years, people are still actively moving. Despite the challenges, there is ongoing activity in the real estate market.
Find out why Kaya Homes is the leader in Long Island Real Estate and are your go-to realtor in the Lynbrook, Oceanside, Malverne, Hewlett, Valley Stream, East Rockaway, Woodmere, Cedarhurst, Baldwin, North Woodmere, Woodsburgh, Hewlett Neck Hewlett Harbor, Bellmore,Wantagh,Merrick and Freeport area.
Thu, 23 Nov 2023 00:42:20 +0000
by Mottek Group