As home prices continue to rise due to lack of inventory, home buyers are concerned about housing affordability. Just a few years ago, foreclosed properties sold at significantly reduced prices and the deluge of distressed homes for sale pulled all home values down. It was difficult to sell at any price. It was also difficult to buy — lending guidelines were strict and buyer confidence was low.
After the market absorbed the distressed properties, home values accelerated rapidly, and the market experienced multiple years of double-digit appreciation.
Today, inventory levels are still limited, but the rate of appreciation is slowing as the market adjusts towards its historical appreciation rate.
When we look at the numbers recently, the home affordability index hasn’t been this low since 1990. Which of course is very good news.
Let’s get together to discuss your goals and determine if you’re ready to make the next move. Now is a great time to buy.