19 Aug Monday Real Estate Review
Those shopping around for homes can put concerns about rising mortgage rates aside because a new concern of housing affordability is on the rise. After the May jump, mortgage rates have remained steady around the 4.4% mark. While that’s up a full percent from November 2012’s record low, rates will continue to stabilize as the real estate market recovers.
However, there is a down side to the housing market’s recovery: less people are finding themselves able to afford homes. According to the National Association of Home Builders, only 69.3% of new and existing homes recently sold were affordable to households with the U.S. median income of $64,400. The recent 69.3% is down from 73.7% in the first months of 2013. This is also the first time this particular housing affordability measure has fallen below 70% since late 2008.
According to National Association of Home Builders Chairman Rick Judson, a home builder from Charlotte, NC, “home values are strengthening at the same time that the cost of buildings homes is rising due to tightened supplies of building material, developable lots and labor.” Together with May’s rising mortgage rates, all of this has been contributing to housing affordability slipping to the lowest level since 2008. Average prices of Charlotte, NC homes range from $180,000 to $240,000 and have remained steady for the most part. As Charlotte prices currently remain affordable, the city’s real estate market has continued to grow and has attracted people from all of the United States. However, as the attraction grows and mortgage rates remain stable, it is time to consider all of your options as soon as possible.