Could this be the best time to invest in Real Estate?
Affordability in the United States is at its lowest recorded level ever at the end of 2011.
Note: Affordability is calculated as a Percent of a family’s income required to make mortgage payments on a median priced home.
Historically the affordability average is 22.1 percent. In 1980 affordability was 36% and in 2005 at the peak of the housing boom affordability for a median priced home was 23%.
In 2011 housing affordability was at 13.6%, again the lowest it has ever been.
Let's put that in perspective, if you bought a home in 1989 for $94,000 with a 10 percent Mortgage rate your monthly payment would have been $825 per month.
In 2011 you could have bought a home costing $166,000 at 4.45% and your monthly payment would have been $837 per month.
Now ask yourself the question. "Could this be the best time to invest in Real Estate?"
FYI as of this blog the average 30 fixed mortgage rate is at an astounding 3.98%. WOW!
Affordability stats provided by NAR National Association of Realtors.