October 18th, 2012
Several studies demonstrate that the housing market is showing signs of stabilization, but the average American family may still face affordability challenges.
New research released by Interest.com, a Bankrate.com company, reveals the average median-income household can only afford a median-priced home in 14 of the nation’s 25 largest metropolitan areas. Detroit, Atlanta and Minneapolis were the areas offering the most affordable prices for median-income families, while those in San Diego, New York and San Francisco were the least affordable.
“Despite all of the talk about how homes are more affordable than they have been in decades, buying a home is still a big challenge for many American households,” said Mike Sante, managing editor of Interest.com. “Dealing with rising expenses and stagnant wages is a struggle.”
A mortgage consultant can steer potential buyers toward homes that fall within their budgets and enable them to make payments without experiencing financial strain on other spending categories. However, it’s also important that home seekers consider add-on costs, such as homeowners insurance, closing costs and maintenance before making their final decision to purchase property.