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For Some, Buying a Home in Southern Maryland May Get Easier

Because buying a home has long been a hallmark of success in America, whenever that possibility seems to weaken for the average Joe (or Josette), it comes as sobering news. Back in June, CNN Money ran a downbeat story focused on how the rising cost of housing had been “putting a major squeeze” on some Americans. For Southern Maryland readers who took it to heart, that kind of grim analysis could have been enough to cause them to reassess their own prospects.

But now there is evidence that the “squeeze” may be losing its grip.

The CNN story focused on what most experts agree is the maximum of monthly income that should be allotted toward buying a home. That number is 30%. The authors found that rising real estate prices had made that goal unattainable “for millions of Americans.” It pointed to nearly 19 million who were then devoting more than 50% of their income to housing costs.

In truth, no financial advisor worth listening to would recommend such a budget allocation. In reality, no prospect intent on buying a home in Southern Maryland under such a scenario would be likely to find a mortgage lender, either.

Back in June, it did seem as if the nation’s economic prospects were showing signs of better news—and since then, the consensus has brightened steadily. As one consequence, Southern Maryland home buyers are now likely to experience the affordability prospects that look a good deal different.

Last week, CNBC reported Fed data showing that household wealth rose a healthy 2% in the third quarter alone. That made it “near double the level it was during the financial crisis.” Particularly if wage growth continues to quicken, it’s a trend that, combined with continued historically low mortgage interest rates, should support a rosier affordability picture.

In fact, the National Association of Realtors’® composite Housing Affordability Index has been on the rise in every month since CNN’s June feature. If the NAR’s latest estimate of median mortgage payments for existing American homes is accurate (they have it at only 15 ½% of family income), that early summer housing “squeeze” may have already lost its grip on many families.

Buying a home in Southern Maryland should result in a more stable, predictable family housing budget—and a bottom line that’s headed in the right direction. It’s one of the reasons it’s a pleasure for me to guide buyers through the home buying process. Call me!

Waldorf MD Homes for Sale and Real Estate Services in Southern Maryland. You now have a search engine to help you with your Southern Maryland home search! And I’m ready to provide you with a custom home valuation if you’re considering selling your home. Let’s connect to discuss how I can help you. Contact Kimberly Bean at 301-440-1309