The National Association of Realtors (NAR) recently released their July edition of the Housing Affordability Index. The index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national level based on the most recent price and income data. NAR looks at the monthly mortgage payment (principal & interest) which is determined by the median sales price and mortgage interest rate at the time. With that information, NAR calculates the income necessary for a family to qualify for that mortgage amount (based on a 25% qualifying ratio for monthly housing expense to gross monthly income and a 20% down payment).
Here is a graph of the income needed to buy a median priced home in the country over the last several years:
And the income requirement has accelerated even more dramatically this year as prices have risen:
Let's take a look at what's happening out there this week...
There were 11 new listings this week in Chatsworth. They range in price from $724,999 -$1,190,000; size 1845sf - 4271sf; age from 1964 - 2005.
Check out all the new listings this week in Chatsworth – CLICK HERE
One of my favorites this week...
9611 N Baden Av, Chatsworth 91311
$1,399,680 ML# SR15246415
Spacious sophistication and luxury are offered by this sprawling five bedroom home in an equestrian community in one of the most desirable locations in the San Fernando Valley. The home features an incredible floor plan with an elegant gallery entry, separate living room and a huge great room. Perfect for entertaining, the chef's kitchen opens into the great room and has a large butler's pantry that flows to the elegant dining room with a soaring ceiling. There are stainless steel Professional Series GE Monogram appliances including a 48" six burner gas range with griddle, granite counters and a breakfast nook that looks over an enormous pool-sized backyard. There are upgraded designer touches throughout the house. The master bedroom is its own oasis with a large deck and a master bath with a large soaking tub, and a vanity with dual sinks. The secondary bedrooms are large and have Jack and Jill attached bathrooms. The home has the latest energy saving features and a 4.000 gallon rainwater cistern water system. as well as a ten year builder structural warranty.
Bottom Line Some buyers may be waiting to save up a larger down payment. Others may be waiting for a promotion and more money. Just realize that, while you are waiting, the requirements are also changing. If you'd like to know where you stand, and what kinds of requirements you're facing financially -- CLICK HERE -- for our free home loan report. Our job is to know all the ins-and-outs and little-known programs, so that together, we can plan out the best way for you to find & buy the home of your dreams.
As always you can reach us directly at (818) 621-9897.
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