Are Main Line Homes More or Less Affordable in 2021? Are we in a bubble? Are homes more or less affordable now than in 2021? There is non stop press about labor and timber shortages and inventory being unavailable, which has a lot of buyers putting on the brakes on buying, BUT On The Main line PA, homes are actually as affordable as in 2016. It’s true, homes are as affordable as 2016 and it is a great time to buy. How are homes more affordable? Let me explain. Even though home prices are appreciating, because mortgage rates fell below 3% in July, a mortgage payment is roughly 19.8% of the median monthly income, according to Mortgage Monitor Report. Assuming you still put 20% down and get a 30 year mortgage, the average home buyer can afford $32000 more for the same monthly mortgage payment.This is down from the average of 25% from 1995-2003. The average home buyer is still in an excellent position, as good as 2016, to buy a home on The Main Line.
Since the homes on The Main Line are luxury and budgets are higher, I also get asked What does this affordability mean for luxury home buyers? Luxury buyers are not more likely to buy with cash, unless they are purchasing for reasons that are related to income generating properties. Almost all home buyers are looking to get more value and pay less taxes. Taxes on mortgage payments are less than paying cash and even if your income is higher, so is what you can afford monthly and the amount of house you can get. So across the board, luxury or average home buyer, In terms of affordability, now is a great time to take advantage of the affordability that comes with low mortgage rates. If you are considering purchasing your first home or moving into a new one, you will get $32,000 more house for your money, or more. Reach out to us or follow our tips on the link below. I would love to help and remember Kimmy Rolph Sells The Main Line and local areas.