For all the naysayers that believe the real estate market has permanently crashed and will never be affordable again, here’s your rebuttal. In recent studies, several independent agencies compared the affordability of housing in the United States from 1989 to 2012. As you can see from the graphic below, the median home prices have risen much higher since the 1990’s, but if you calculate the mortgage rate into the cost, you’ll see the monthly payments are actually lower in 2012.
Even though houses in 1989 are cheaper, you are still paying more for the property because of the high interest rates on the mortgage. To combat this incline, the Federal Reserve, in 2012, set mortgage rates at an all time low to help stimulate the housing market. The immediate result are more affordable houses.
The Time to Buy
With low mortgage rates and the real estate market back on the rise, there is hardly a better time to buy. Talk with one of our real estate agents and discover how affordable it is to live in the Huntsville area. Call us at (256) 799-9000 or email us via our Contact Page.