If you are interested in purchasing a home this year and you are a middle class citizen you might find yourself having a difficult time getting into the home that you are trying to purchase. Do not worry that it is only you because you will find that it is not. Being able to afford a home with the economy in the shape that it is in is becoming almost impossible. If you are a house hunter that is looking at a more expensive home you might find yourself reaching for the stars with no possibility of obtaining that dream.
Across The Country
Different parts of the United States have different affordability rates. Throughout the Midwest you will find that homes are much more affordable than the homes that are being purchased on the east coast or the west coast. An example of what you will need to earn in the Midwest to afford a median priced home are as follows: In the city of Cleveland you will need to earn only around thirty thousand dollars, St. Louis is only around Thirty Two Thousand dollars while New York is closer to Ninety thousand and San Francisco is well above that at one hundred and thirty eight thousand. When you see those numbers you will definitely realize that it is more cost affordable to live in the mid west.
Home Prices And Mortgage Rates
The economy is leading to home prices getting higher everyday. While this is a good thing for the builders and the sellers of homes that are for sale it is not a good thing for those who are looking to purchase a home. Even though the home prices are rising the home mortgage rates are not falling. This is causing the home purchasing market to come almost to a stand still unless you are one of the lucky ones that can afford a larger house payment. In a recent study it was found that in the Midwest there are more than eighty percent of homes for sale that can be affordable for the people who are earning the median salary. However it is a different story on the east and the west coast. The rates of affordability are a very low amount for those earning the median income to afford to purchase a home and it only seems to be getting worse and not better.
Is It Getting Better
Unfortunately the outlook is not getting any better. The affordability rate has only gotten worse over the past year or two and the housing prices are getting more expensive. In fact the cost of homes and the mortgage rates are rising much faster than the median income. Therefore it is almost impossible for the typical every day person to purchase a home of their own.
Requirements To Purchase A House
If you are lucky enough to have a decent job that is stable you will find that if you are in cities such as St. Louis or Cleveland you will be able to afford purchasing a home. Of course there will be some requirements to purchase your home. You will need to have a very high credit score and a qualifying amount of income. The amount of income needed will depend on the price of the house you want to purchase. Once you have met the qualifying demands you will be able to start searching for your new home.
In today’s economy purchasing a home is not impossible but it is not easy either. You will need to do your research and realize how much money will be needed to buy the home of your dreams. Once you know you can start your search.