According to recent reports from the housing index generated by the National Association of Home Builders and Wells Fargo, the most affordable time to purchase a home in the last two decades is right NOW. The National Association of Home Builders/Wells Fargo Housing Index looks at the percentage of new and existing homes on the market that could have been purchased by families who are earning the national median income of $64.200. The recent index found this figure to be 75.9%, the highest in the 20-year history of this index.
The drop in homes prices and the record low mortgage rates have created this “perfect storm” of buyer favorability in the real estate market. This, obviously, comes as no surprise to buyers though. The inventory of available new homes and existing homes for sale has been shrinking while building contracts are on the rise, suggesting that the market is poised for a successful future.