Affordability has improved for the second straight month. Owning a home is a dream for a lot of Americans. But no one wants to own a home they have to struggle to afford. Low interest rates helps immensely to help even more Americans to purchase their investment or dream home. This is why there is so much focus on housing affordability at the present moment in 2021. Put simply, the is a drastic shortage of homes for sale in America and it has made finding an affordable home more challenging for today's buyer. First-time buyers use to make up a larger share of homes sold in any given year. typically they account for nearly 40% of annual home sales. Younger home buyers, for a multitude of reasons have been less active in the housing market in recent years. According to one new analysis, for example the share of buyers between the ages of 18 and 39 years of age fell 13 percent between 2009 and 2019.
This association (NAR) offer's much encouragement, though especially for Americans who want to buy but worry homeownership may now be out of their financial reach. The numbers, from the NAR's most recent Housing Affordability Index, show that affordability conditions have actually improved now for the second-consecutive month. In fact, the typical monthly mortgage payment dropped 1.1 percent in August from the month before.
The index which compares median incomes to the income needed to comfortably qualify for a mortgage found that the Midwest was the country's most affordable region, with the median incomes around $30,000 more than the amount needed to qualify for a mortgage. But even in the West, where buying is most expensive, the median incomes the median income is still roughly $12,000 more than what is needed to qualify for a mortgage.
Market conditions have been difficult for home buyers this last year and this year. Rising prices and competition for available listings have made things challenges, buyer demand has remained strong, even through the hot spring and summer markets. And now heading into 2021 fall and winter, it still shows few signs of slowing down. Predictions are not easy to make in any turbulence market. One may say we may mortgage rates may continue to rise slightly but remain low throughout 2022.
Your professional Central Florida Realtor, Kevin Strawter is always eager to guide you to the success on opening or closing a chapter in life on your real estate needs. Contact him today at 407 479-8583.