Home Buyer’s Last Chance For Cheap Housing?

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8651340-suburb-real-estate-backgroundThe National Association of Home Builders (NAHB) released its quarterly report. The report measures the median household income of 225 metropolitan areas nationwide, and maps those findings against each respective areas’ median housing costs.

The result is what’s called the Home Opportunity Index (HOI), a quarterly report of home affordability nationwide.

The Home Opportunity Index makes the following assumptions:

  • It assumes a 10% downpayment by the buyer.
  • It assumes that mortgage rates are equal to a weighted average of the quarterly fixed- and adjustable-rate mortgages.
  • It assumes that a home buyer’s monthly housing payment won’t exceed twenty-eight percent of the area monthly median income.

Using these values, the NAHB Home Opportunity Index found that nearly 3 in 4 U.S. residents could “afford” to buy a home. Affordability has been boosted by low mortgage rates and low home prices.

Today, the economy is mending. More than 4.3 million jobs have been added; home prices are rising in many U.S. markets; and consumer spending is on the rise. Home affordability is among the lingering effects of last decade’s recession. Soon, homes won’t be so affordable.

If you plan to buy a home in 2013 or 2014, consider moving up your timeframe. Beyond the cliché, it really is a good time to buy. Get started by seeing how much home you can afford. Get a personalize rate quote  and start to build your budget.

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