Recently, multiple headlines have been written asserting that homeownership is less affordable today than at any other time in the last decade. Though the headlines are accurate, they lack context and lead too many Americans to believe that they can’t partake in a major part of the American Dream – owning a home.
In 2008, the housing market crashed and home values fell by as much as 60% in certain markets. This was the major trigger to the Great Recession we experienced from 2008 to 2010. To come back from that recession, mortgage interest rates were pushed down to levels that were never seen before.
For the last ten years, you could purchase a home at a dramatically discounted price and attain a mortgage at a historically low mortgage rate.
Now that home values have returned to where they should be, and mortgage rates are beginning to increase, it is less affordable to own a home than it was over the last ten years.
If you take out the years after the crash, affordability today is greater than it has been at almost any time in American history.
This has not been adequately reported which has led to many Americans believing that they cannot currently afford a home.
As an example, the latest edition of Freddie Mac’s Research: Profile of Today’s Renter reveals that 75% of renters now believe it is more affordable to rent than to own their own homes. This percentage is the highest ever recorded. The challenge is that this belief is incorrect.Study after study has proven that in today’s market, it is less expensive to own a home than it is to rent a home in the United States.
Thankfully, some are starting to see this situation and accurately report on it. The National Association of Realtors, in their 2019 Housing Forecast, mentions this concern:
“While the U.S. is experiencing historically normal levels of affordability, potential buyers may be staying out of the market because of perceived problems with affordability.”
If you are one of the many renters who would like to own their own homes, let’s get together to find out if homeownership is affordable for you right now.
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Author:Andrea Semanko Phone: 360-840-9309 Dated: November 8th 2018 Views: 50 About Andrea: As a northwest native, I have a great understanding of Skagit, Island and Snohomish Counties as to t...
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About Semanko Realty Group, LLC & Washington Quality Homes
Semanko Realty Group is an independent “Boutique” real estate company in the Puget Sound Region & Greater Seattle/Tacoma Communities. Our agents serve Pierce, King, Snohomish, Island, Skagit & Whatcom Counties.
As lifelong residents of the Pacific Northwest, our agents share the same values as the people who live in the communities throughout the Puget Sound. Whether you plan to live & work locally or need to be an extreme commuter, they'll help you find a place to create that lifestyle. They work well with Home Buyers & Sellers anywhere from Olympia to Bellingham because they've embraced the new technology of the internet. They've successfully placed buyer's & seller's together with the unique marketing methods of Semanko Realty Group as an ”Independent Boutique Presence” throughout the Greater Seattle area. />
Real Estate is simultaneously fun and stressful for most people. Our experience at Semanko Realty Group helps minimize the stress. It keeps our clients and all parties moving in the right direction to close their transactions successfully and on time. This means going the extra mile to navigate the issues, playing nice and staying focused to keep all parties accountable. Our goal is to do more than expected and receive referrals from our clients; it's the best compliment we can receive!
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