Homes are more expensive than they used to be in terms of pricing, but are they any less affordable than homes have been in the past? We’re going to examine that today.
Instead of looking at the current market statistics or answering questions about whether we are in a bubble or not, I want to look at the statistics from the past that put the current market into context.
In the graphic above, you can see how the housing affordability index has changed over the years. Any number greater than 100 means that the median wage can afford the median home price. Although homes have become a little less affordable since the bottom of the market in 2012, they are still just affordable as they were back in 1990.
“Homes are just as affordable now as they’ve been in the past.”
So, is it a good time to buy a home? Yes. It’s a great time to buy because we’re going to have some good appreciation over the next few years and you can build your net worth by doing so. If you have any questions for us in the meantime about buying or selling a home, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.