There has been talk in the news recently about affordability. So, we decided we would explain what affordability means and address how it may impact you. We hope doing so will assuage any worries you may have.
You may have heard that the affordability index is dropping. The affordability index is a number that is measured by mortgage rates, interest rates, and pricing. The news has reported that this index has dropped by about 5%.
As a consequence, buyers in the market are now worried that their budgets will be stretched. But there is no reason to be overly concerned. We are nowhere near historic lows in terms of affordability, though we will continue to see the affordability rate drop from about 15% to 20% by year’s end.
So, what does this mean to you? If you are a seller, now is the time to prepare your home and get it on the market.
If you are a buyer who is ready to buy, why wait any longer? There should not be any excuse because waiting until next year hoping that prices come down will be a disappointment. Prices will not come down because of the market. Now is the best time.
The key is to reach out to us right away if you would like to discuss your buying and selling plans. We would love to help you succeed.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.