The state with the highest housing affordability is …
Texas!
Record-low
interest rates and low median home prices have made Texas the state with the
most affordable homes, according to the Real Estate Center at Texas A&M
University. Fort Worth is the state’s most affordable major metro, while Austin
has the highest median home price.
“The home
purchasing power of a dollar in income increases dramatically as interest rates
fall,” says Jim Gaines, research economist with the Real Estate Center. “With
an 80% loan at 10% interest, $1 of income buys about $3 of housing. At 7%, it
buys $4 of housing. At 4%, it buys nearly $5.50.”
But the gap
between Texas and the rest of the nation is narrowing. The national median home
price fell 25% from 2006-2011, while the median price in Texas increased 4%.
Gaines says that Texas affordability may soon decrease as home prices begin to
rise faster than incomes in some areas of the state.
Reshared by Michelle CannonCannon Realty & Associates
This weblog will be a way for you to not only talk about what you're experiencing in the property company - the types of qualities, viewpoints on prices, etc.
ReplyDeleteRusty Solomon