Home Affordability: Myth or Reality?

HomeReal Estate

  • Author Dencho Denchev
  • Published April 28, 2010
  • Word count 403

For many young couples, the idea of owning their own house

just like their parents is an attractive idea, but it’s not

very realistic. A recent poll conducted by the Associated

Press and America On Line Real Estate showed that 80 percent

of respondents believe that it is hard for first-time buyers to

afford a home. A majority of those polled – 59 percent – also

said that they believe it is harder to buy a home now than it

was five years ago.

Taking a closer look at the poll reveals that young adults and

those that classify themselves as minorities consider the

affordability of homes a bigger problem now than five years ago,

compared to those over the age of 50 and those that identify

themselves as white.

Broken down by region, almost 70 percent of those living in

the western United States and almost 65 percent of those

living in the Northeastern US say that it’s harder to buy now

than five years ago, compared to only 54 percent of those

living in the South and 51 percent of those living in the

Midwest.

The poll also found that almost half of those surveyed thought

that the real estate market in their home area was overpriced.

A recent report by the census bureau seems to back up the

findings of the AP/AOL survey. The census report found that

approximately one third of all homeowners in the US that have

mortgages spent at least 30 percent of their income on housing

and housing related costs. It’s widely considered excessive if your housing costs make up more than one third of your

income. The census took things like mortgage payments,

insurance and utilities and taxes into account.

The biggest reason for this lack of faith in new home ownership

can be directly attributed to the recent housing boom over the

last five years. Also, a recent increase in mortgage rates

has also dampened optimism. And while incomes are up, as well,

most don’t even keep up with inflation.

Another recent trend that has kept optimism for first time

home buyers down is the 32 percent jump in median home value

from 2000 to the end of 2005. The current median price is

around $167,500. While buying your first home is never easy,

things may be a bit harder now than they have ever been. But

bargains so still exist, and if you’re patient, a first home

can still be yours.

Dencho Denchev is not a real estate broker. He is human like you.

He's goal is help others buy real estate with no money, no job,

no credit, even bad credit. For more info visit Dencho's site:

http://tinyurl.com/yc8obne

Article source: http://articlebiz.com
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