Looking To Still Get A Bargain On Home On Mortgage Better Hurry

Dated: 05/31/2019

Views: 33

Last Chance! Homes are a Bargain Compared to Historic Norms

Last Chance! Homes are a Bargain Compared to Historic Norms | MyKCM

A loaf of bread used to be a nickel. A movie ticket was a dime.  Not anymore. Houses were also much less expensive than they are now. Inflation raised the price of all three of those items, along with the price of almost every other item we purchase.

The reason we can still afford to consume is that our wages have also risen over time. The better measure of whether an item is more expensive than it was before is what percentage of our income it takes to purchase that item today compared to earlier. Let’s look at purchasing a home.

The COST of a home is determined by three major components: price, mortgage interest rate, and wages. The big question? Are we paying a greater percentage of our income toward our monthly mortgage payment today than previous generations? Surprisingly, the answer is no.

Historically, Americans have paid just over 21% of their income toward their monthly mortgage payment.

Though home prices are higher than before, wages have risen as well. And, the most important component in the cost equation - the mortgage rate - is dramatically lower than it was in the 1970s, 1980s, 1990s, and 2000s.

Today, according to the latest Home Affordability Index just released by the National Association of Realtors, Americans are paying 17.4% of their income toward their mortgage payment. That is much lower than the 21% average previous generations have paid.

Last Chance! Homes are a Bargain Compared to Historic Norms | MyKCM

Bottom Line

The cost of purchasing a home today is a bargain compared to previous generations when we look at it from a percentage of income basis. However, with mortgage rates expected to increase and home prices continuing to appreciate, that will not always be the case. Whether you are buying your first home or looking to move-up to a more expensive home, purchasing sooner rather than later probably makes sense.


Now is the time to get you home and still save 💲💲💲  Let me help you with the process and get you a preapproval.. or experts can help with credit in the 500-600 range and with difficult credit! Even if you dont have your down payment money yet.. we should talk.. You should take 5 minutes out of your day to get the HOME Of your dreams.. Before it is out of reach!


Call the experts!

Ann Norton 330-412-9799

Josh Twitchell 330-412-7413

Blog author image

Ann Norton

I am dedicated to you! I will give you a 100% all of the time day or night! I will get you the house you want for the price you want! I will sell your house and get it done quickly! I think outside th....

Want to Advertise on this Site?

Latest Blog Posts

Easy Fast PreApproval

Want to be Pre-Approved👀? Need more info🤷‍♀️? We want to help you have the first steps to purchase a HOME! we help you not only be ready📃but be CREDIT READY...

Read More

Getting Ready To Sell Be Sure To Do These 10 Things

Summer is the New Spring for Real Estate  Some Highlights The health crisis slowed the market this spring, so buyers are jumping back into the market to make their moves this summer.

Read More

We Have Your Answers To Get Out Of Debt Fast And Buy A Home

6 things to get out DEBT and buy a HOME!!!1. Study your spending Habits2. Eliminate your biggest debt first3. Lower your interest rates4. Estabish an emergency fund5. stop adding to your debt6. cut

Read More

What Information Do You Need To Make A Offer On A Home

Ever wonder what you need to have to make a offer on a home? We have the info you need!! Any questions please reach out and we are here to help you!We offer Free credit repair😲😲We offer

Read More