As of late, there’s been a lot of buzz about home prices going up, and a fair amount of anxiety about what that means for buyers. While some headlines have been announcing an “affordability crisis,” that’s perhaps an over-sensationalization of current conditions.
If you’re worried about not being able to afford a home in the greater Raleigh area, here’s why you may not need to be as concerned as the headlines would lead you to believe.
What’s the Housing Affordability Index?
Every month, the National Association of Realtors crunches the numbers to create a Housing Affordability Index. This index measures how affordable it is for a family with a typical income to purchase a median-priced home, assuming a 20% percent down payment.
The index uses the number 100 as a starting point, and the higher the index gets, the more affordable homes are.
What the Index Has to Say
This year, the index is at 153, which is higher than it ever was from 1990 to 2008. The periods when the index was higher than it is today—2009 to 2017—were right on the heels of the housing crash, so the purchase of distressed and discounted properties was a frequent occurrence.
In fact, this year’s number is five points higher than last year’s, meaning 2019 has been more affordable for homebuyers than 2018!
Now is a Great Time to Buy
With low mortgage rates and affordable home prices, right now is a great time for buyers. If you’re in the market to purchase a home soon, you should take advantage of these favorable conditions while you can, and kick off your search process.
Find Your Dream Home in the Raleigh Area
With years of experience in Raleigh real estate, Linda Craft & Team REALTORS® is more than prepared to help you find your new home in Raleigh. Take a look at a few of the resources we have to offer, and give us a call when you’re ready to start seeing a few homes in person!