People Are Still Moving, Despite Today's Affordability Challenges
If you are considering buying or selling a home, you may have heard that the market is difficult right now because mortgage rates are higher than they have been in recent years and home prices are rising. That is correct. Take a look at the graph below. It compares the current affordability situation to previous years.
The National Association of Realtors (NAR) explains how to interpret the graph's values:
“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 index represents the 100 value. Essentially, the higher the bar, the more affordable homes are. As you can see from the orange bar for today, rising mortgage rates and home prices have created a significant challenge. However, while affordability is certainly tighter right now, the housing market is not at a standstill.
According to NAR, based on the pace of sales right now, just under 4 million homes will sell this year. With some simple math, let’s break down what that really means for you:
- 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
So, on average, over 10,000 homes sell each day in this country. Whether you're a buyer or a seller, this goes to show there are still ways to make your move possible, even at a time when affordability is tight.
An Agent Can Help You Make Your Move a Reality
You might be wondering how other homebuyers and sellers are doing it now. Working with a reputable local real estate agent is a game changer in today's market. Great agents are assisting people just like you in navigating today's market and the current affordability situation, and their advice is priceless right now.
True professionals will be able to provide advice that is tailored to your specific wants, needs, budget, and other factors. Not to mention, they will be able to draw on their knowledge of what is working for other buyers and sellers right now. This may imply broadening your search to include other housing types such as condos, townhouses, or neighborhoods a little further out to help offset some of today's affordability challenges.
You might think that because affordability is tighter than it has been in a long time, there are not many people buying or selling homes right now, but that is not the case. Although purchasing a home has become more expensive in recent years, people are still moving.
If you are looking to buy or sell a home today, know that others are still making their dreams a reality, thanks in large part to the assistance and advice of knowledgeable local real estate agents. Do you want to talk to a reputable professional about your upcoming relocation? Let’s connect.