Housing price is escalating nationwide, up to 94% of main metropolitan areas, according to studies based on the fourth quarter of 2019. The good news is that buyers still lean on low mortgages rates, in the fourth quarter of the past year, the 30-y fixed mortgage was on average 3.76%.
To afford a mortgage, a first-time homebuyer would need an estimate of $48,288 a year for a monthly average payment of over $1,000, assuming a 10% down payment.
According to NAR (National Association of Realtors), finding a property available for sale is challenging, plus, home prices have gone up during each quarter of the year (2019), potential buyers are struggling even when we are having a good economy and low-interest rates.
Real estate prices increased in the coasts, mostly in:
- San Jose, CA. – $1.25 million
- San Francisco, CA. – $999,000 (3.9%)
- Anaheim-Santa Ana, CA. – $828,000 (3.6%)
- Urban Honolulu, Hawaii – $812,600 (0%)
- San Diego, CA. – $655,000 (4.6%)
- Boulder, CO. – $630,400 (6.4%)
- Los Angeles-Long Beach, CA. – $617,300 (7.2%)
- Seattle-Tacoma, WA. – $528,800 (8%)
- Nassau County, N.Y. – $496,600 (3.7%)
- Boston-Cambridge, MA. – $482,800 (4.9%)
These areas are highly expensive as shown above, for a family to be able to afford a property in one of these locations it would have to make an estimate of $100,000/year with the assumption of a 5% down payment on a 30-y mortgage.
A balance is needed to benefit both current and future homeowners, however, at least for now, the balance favors home sellers.
Our suggestion to you is to buy as soon as possible since the price always tends to increase. If interested in property check out Castles Unlimited listings!