• Contact Us
  • (703) 447-2236
    • Tweet
    • Share
    • +1
    • Share
    • Email
Re/Max Premier
  • Menu
  • Call
  • Email
  • Sign In
Tim and Ayda Walsh — Remax Premier
  • Login / Create Account
  • Home
  • Search
    • All Homes
    • Single Family Homes
    • Townhomes
    • Condominiums
    • Rentals
    • New Construction
  • Communities
    • Fairfax County
    • Loudoun County
      • ASHBURN
      • BRAMBLETON
      • HILLSBORO
      • LANSDOWNE
      • LEESBURG
      • STERLING
    • Prince William County
      • DUMFRIES
      • HAYMARKET
      • GAINESVILLE
      • WOODBRIDGE
    • Arlington County
    • Falls Church City
    • Fredericksburg County
    • Manassas
    • Manassas Park
  • Resources
    • Listing Services
    • Affordability Calculator
    • Home Value Estimator
    • Mortgage Calculator
    • Request CMA
    • School District Information
    • Home Sales Activity
  • FREE Guides
    • Home Seller Guide
    • Winter – Home Seller Guide
    • Home Buyer Guide
    • Winter – Home Buyer Guide
  • Contact
  • About
    • Meet the Team
    • Testimonials
    • Our Listings
  • Blog
  • Condos
    • The Colonies of McLean
    • Encore of Mclean
    • Fountains at McLean – McLean, VA
    • The Gates of McLean
    • McLean Chase
    • McLean Hills – McLean, VA
    • One Park Crest
    • The Palladium at McLean – McLean, VA
    • Regency at McLean
    • Renaissance 2230
    • The Rotonda – McLean, VA
    • Westwood Village
  • Tim and Ayda Walsh — Remax Premier

Last Chance! Homes are a Bargain Compared to Historic Norms

A loaf of bread used to be a nickel. A movie ticket was a dime.  Not anymore. Houses were also much less expensive than they are now. Inflation raised the price of all three of those items, along with the price of almost every other item we purchase.

The reason we can still afford to consume is that our wages have also risen over time. The better measure of whether an item is more expensive than it was before is what percentage of our income it takes to purchase that item today compared to earlier. Let’s look at purchasing a home.

The COST of a home is determined by three major components: price, mortgage interest rate, and wages. The big question? Are we paying a greater percentage of our income toward our monthly mortgage payment today than previous generations? Surprisingly, the answer is no.

Historically, Americans have paid just over 21% of their income toward their monthly mortgage payment.

Though home prices are higher than before, wages have risen as well. And, the most important component in the cost equation – the mortgage rate – is dramatically lower than it was in the 1970s, 1980s, 1990s, and 2000s.

Today, according to the latest Home Affordability Index just released by the National Association of Realtors, Americans are paying 17.4% of their income toward their mortgage payment. That is much lower than the 21% average previous generations have paid.

Last Chance! Homes are a Bargain Compared to Historic Norms | Simplifying The Market

Bottom Line

The cost of purchasing a home today is a bargain compared to previous generations when we look at it from a percentage of income basis. However, with mortgage rates expected to increase and home prices continuing to appreciate, that will not always be the case. Whether you are buying your first home or looking to move-up to a more expensive home, purchasing sooner rather than later probably makes sense.

Posted in:

  • Home Selling

Post Tags:

  • Northern Virginia,
  • Real Estate,
  • Sellers

QUICK LINKS

  • Property Search
  • Communities
  • Listing Services
  • Featured Listings

Tim Walsh

(703) 447 -2236
Tim@YourNewHomeTeam.com
Tim Walsh is licensed in Virginia

Ayda Walsh

(703) 408 – 4582
Ayda@acevam.com
Ayda Walsh is licensed in Virginia

© 2019 Tim and Ayda Walsh — Remax Premier. VA DRE #0225057874 All Rights Reserved. Tim and Ayda are independent real estate agents, husband/wife working together.  As of Jan 1st, agents are limited to advertising as a TEAM unless they have a business entity/licensed under a TEAM. We are independent agents working together but not under a TEAM Business.
COMMISSION MATCH/BEAT GUARANTEED! CALL (703) 870 - 3885
© 2018 Your New Home Team with RE/MAX Premier - Tim & Ayda are licensed in Virginia. Some of the data relating to real estate for sale on this web site may come from MRIS or from the owners of the property. Other Listings or additional information may come from various different websites or brokers who participate in the MRIS, MRIS Products or with ACE Video & Marketing. Properties listed with brokerage firms other than Your New Home Team with Remax Premier are marked with the MRIS Logo and detailed information about them includes the name of the listing brokers. The properties displayed may not be all the properties available. All information provided is deemed reliable but is not guaranteed and should be independently verified. Jeff Lubell is licensed in VA. We respect agency relationships. If you are already working with an agent, this is not intended to be a solicitation. Privacy Policy RE/MAX Premier
HQ: RE/MAX Premier Fairfax 13135 Lee Jackson Hwy # 115, Fairfax VA Phone#: 703-802-2850
RE/MAX Premier Ashburn 44675 Cape Ct Suite 110 , Ashburn, VA Phone#: 703-318-0067
RE/MAX Premier Burke VA 9283 Old Keene Mill Rd, Burke, VA Phone#: 703-455-0200
RE/MAX Premier Purcelville 1021 E. Main Street, Purcelville, VA Phone#: 540-338-6300
RE/MAX Premier Leesburg 602 S. King Street Suite 202, Leesburg, VA Phone#: 571-210-7355
 
Real Estate Website Design by Home Junction, Inc.
Sign In With
Google+
Facebook
Or Email
Sign In
Or Register
Let technology work for you even when you sleep
  • track new relevant listings
  • status & price changes
  • save properties you like
  • get email alerts and stay ahead of your competition!
Get Started
Sign In
Sign in with Google, Facebook or Email