If you've been watching the housing market, you might be thinking, "Is it just me, or does buying a home these days seem impossible?" Don't lose hope we're about to journey through time and facts to show you that while the market might feel wild, 2023 may not be the most unaffordable time to score your dream home.
Back in my Day vs. Reality
We've all heard the stories of the good ol' days when a candy bar was a nickel and a home cost as much as a cozy sweater. While it sounds impressive, adjusting for inflation paints a different picture. According to the U.S. Census Bureau, in the 1970s, the median price of a new home was around $30,000 – which might sound like a steal until you realize that's equivalent to roughly $180,000 in today's dollars.
Mortgage Rates in Low Places
In 1981 the average mortgage rate was approaching 18%. Fast forward to 2023, and we're experiencing rates near 7%. So, while home prices might be dancing around, the current rates seem more friendly and could be the key to making monthly payments more palatable..
Attaining Affordability Through Financing Options
People often faced higher down payment requirements in the past, potentially making entry into homeownership more challenging. Nowadays, various home loan programs offer lower down payment options, that might make that leap to owning a home a little less heart-stopping.
Over the years, income levels have increased, even when adjusting for inflation. Sure, it might feel like your paycheck is sneaking out of your wallet in the dead of night, but the truth is that our earning potential has grown too. While home prices have hopped on a roller coaster, your ability to afford them isn't necessarily out of reach.
Location, Location, Teleportation?
Remember the phrase, "Location, location, location"? In our modern era of remote work and digital nomads, location isn't always as fixed as it once was. The rise of telecommuting and flexible work arrangements can provide freedom to explore more affordable housing markets.
So there you have it, a sneak peek into why 2023 may not be the most unaffordable time to purchase a home, despite the current market trends. From inflation-adjusted nostalgia to lower interest rates, the home-buying journey might be challenging, but your local Texas mortgage professionals are here to help you finance the home of your dreams.
At Supreme Lending, we understand that navigating the world of mortgages can be overwhelming, especially for first-time homebuyers. That's why we have a team of dedicated mortgage professionals here to make the process smooth and hassle-free. Whether you're looking to buy your first home or refinance your current one, we’ll be ready to guide you through every step of your home financing journey.