A Six-Figure Income is Needed for a "Typical Home" in 2022

A Six-Figure Income is Needed for a

Recent findings suggest that the salary requirements to afford a "typical home" (aka the median mortgage payment in 45 metros across the US) has gone up a staggering 45.6% from October 2021 to October 2022 according to a statistical analysis provided by online real estate giant Redfin.  The reasons are not complicated; mortgage rates have doubled in that time, and while housing prices have retreated slightly in recent months, they've actually risen over that time frame.  The talk of wage increases is legitimate as they have increased, but they have not at all kept pace with inflation.  So, the combination of less money, higher interest rates, and more expensive housing prices has proven to be a combination for which there is little relief.  We again suggest that perhaps instead of only taking on more risky types of loans like an ARM (Adjustable Rate Mortgage) or some sort of temporary buy-down wherein both will revert to the original higher rate at some pre-determined time, perhaps finding new ways to search for property should be added to your arsenal.  Many suggest, like the author of the attached article, that also providing an increased down-payment is a way to defray the cost of a mortgage.  Well, this is certainly true, but the sad truth is that saving for a down payment is typically the primary reason people can't buy a home, so suggesting an increase to lower your monthly obligation by a few bucks works on paper, but not always in the real world.  Finding new ways to locate property, reducing competition, and lowering costs is also a good combination to consider when talking with your Realtor and Lender.  If ever there was a time to have an action plan in place so that when the right property does come along, that time is now.  #realestate #propertyguerilla #mortgagecosts #interestrates #housingprices #buyingrealestate #sellingrealestate #realtor #mortgagelender #mortgagebroker  

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