It seems like everyone’s talking about affordability and making an assumption that homes are less affordable than they have ever been. Not so fast…
Let’s look at home prices relative to the median income needed to purchase the home.
It’s true that home prices have appreciated year-over-year for the last 76 months in a row, largely driven by high demand and low supply.
According to a recent study by Zillow, the percentage of median income necessary to buy a home in today’s market (17.1%) is well below the mark reached in 1985 – 2000 (21%), as well as the mark reached in 2006 (25.4)!
Bottom line, interest rates would have to increase to 6% before buying a home would be less affordable than historical norms.
It’s homecoming weekend at CSU which means that alums from all over the Country will be back to visit Northern Colorado.
So how does their real estate market stack up versus the place where they went to college?
Odds are, it’s not as good!
It turns out that there are only 9 metropolitan areas out of about 270 that have higher appreciation than Larimer County.
Interestingly, 3 of the 9 are in Washington and 2 of the 9 are in Oregon. So if they are visiting from the Pacific Northwest they probably have an even stronger market than here.
But pretty much everywhere else is below our market.
This is all according to the Federal Housing Finance Authority who tracks the nation’s real estate markets. They show that Larimer County has appreciated 12.08% in the last year which ranks 9th in the nation.
First place belongs to Mount Vernon, Washington at 15.14%. Last place is Atlantic City, N.J. which had a decrease of 0.77%.
So best of luck to CSU in their homecoming game and cheers to a healthy real estate market!
Today is our annual Homecoming weekend Tailgate Party. You are invited to attend.Click HEREfor more info. You can bring family and friends to our office at 400 E. Horsetooth in Fort Collins. We’ll have taco trucks, beer, wine, margaritas, bouncy houses, pony rides and a live band! See you there!
We have just completed a comprehensive report for anyone thinking about selling their home. The Insider’s Guide to Selling Your Home (without any stress or surprises)is now available for you.
It is hot off the press and you can grab a copy by clicking HERE.