Are Homes More Affordable – Chuck Barberini Real Estate

Chuck Barberini Real Estate – BR Real Estate Group

Check out this article from Realtor Magazine Online. It is a real unique look at the housing market and offers a very original point of view. It gives us some good insight into the rapid rise of house prices and how they compare to the prices prior to the pre-crash prices.

Homes Are More Affordable Than 20 Years Ago

DAILY REAL ESTATE NEWS | WEDNESDAY, NOVEMBER 08, 2017

Homes are actually more affordable now than they were in the late 1990s, according to the latest Mortgage Monitor Report by Black Knight Inc., a mortgage data and performance information provider.

A Closer Look: NAR’s Housing Affordability Index

Interest rates have plunged by 40 basis points over the past six months. However, the bulk of the potential savings is offset by the accelerating rate of home price appreciation across the country.

“Rising home prices continue to offset the majority of would-be savings from recent interest rate declines, which has kept affordability near a post recession low,” says Ben Graboske, executive vice president of data & analytics for Black Knight. “That being said, when viewing the market through a longer-term lens, affordability across most of the country still remains favorable to long-term benchmarks.”

As of September, 21.4 percent of the median income nationwide was required to purchase a median-priced home. From 1995 to 1999, that percentage was 24.2 percent, and from 2000 to 2003 it was 26.2 percent, according to Black Knight’s report.

While the monthly payment needed for a median-priced home is up $100 from a year ago, the national “payment-to-income” ratio remains 2.8 percent below averages from the late 1990s, according to the report.

“In looking at the affordability landscape across the country, we certainly see varying levels of affordability in each market compared to their own long-term benchmarks,” Graboske says. “But, by and large, the overall theme is that affordability in most areas, while tightening, remains favorable to long-term norms.”

Black Knight researchers note that 47 of 50 states’ payment-to-income ratios remain below their 1995–2003 averages. Hawaii, California, Oregon, and Washington, D.C., are the lone exceptions, where payment-to-income ratios are higher today than their long-term benchmarks.

Source: Black Knight Inc.

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 Chuck Barberini Real Estate – BR Real Estate Group

Author: Chuck Barberini

As a professional Realtor for over 15 years, I have lucky enough to work with several companies and many different brokers. I have learned and gained experience through all of my interactions and transactions. I have continued to work diligently to nurture and support my network of clients, both buyers and sellers, Real Estate colleagues, investors and other professionals in related fields. By working on and developing relationships, I have been able to maintain and grow my business through the dramatic ups and downs in the Real Estate market over the past decade. I am, however, more than just a Real Estate professional, I’m also a neighbor, a friend, husband and father. I take a keen interest in people and their well-being, working hard to earn and maintain their trust and respect. My upbringing here in the San Francisco Bay Area, as well as my professional experience, has given me the ability to work easily with a variety of Real Estate clients who have a variety of needs. From helping first-time home-buyers find that special home together, to strategizing with investors to find and secure wealth-building assets, I help navigate and problem-solve the complex processes and negotiations that are inherently part of this industry. I prefer to focus on the relationship rather than just the transaction, believing that a satisfied client will share my name with their friends and colleagues. This approach has helped me expand my local network to include the legal community involved with probate issues. And I am proud to be a preferred agent to a number of professionals in this area.

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