If you are a first-time buyer, or someone looking to trade up or down to bigger and or more expensive properties, now is the time to do so. According to the new Beacon Economics Home Affordability Index homes in August were at their most affordable level in 40 years or since data became available in 1969. The Beacon Economics Home Affordability Index is based on the percentage of income an average family would need in order to make mortgage payments on an average priced home. The August estimate shows the cost of home ownership (mortgage interest plus principal payments after a 20% down payment) falling to 16.9% from 17.1% in July. Overall, the Beacon Economics Home Affordability Index has remained below 20% for the past twenty-one months.
What does this all add up to? The bottom line is that if you are blessed with cash, equity or IRA funds, and either want a home or a sound, long-term investment, than real estate is your answer. Your thoughts?