Team Nexus Real Estate Blog

Key Factors That Impact Home Affordability Today

You can’t read an article about residential real estate without the author mentioning the affordability challenges that today’s buyers face. There’s no doubt homes are less affordable today than they were over the last two years, but that doesn’t mean homes are now unaffordable.

There are three measures used to establish home affordability: home prices, mortgage rates, and wages. Let’s look closely at each of these components.

1. Home Prices

Economic times are shifting, technology continues to evolve and the real estate market has become one of the most popular topics of discussion for most people.  The bubble talk is beginning to surface once again.   Many economic sectors are beginning to discuss the increased values in the real estate market and are utilizing a limited perspective of increasing mortgage interest rates to determine their opinions.  Moreover, many are referencing the same 2 elements with the most recent recession a...