Even with home prices marching ever upward and mortgage rates bouncing back more than a full percentage point over last year, Capital Economics’ Paul Diggle insists housing affordability is still as good as most other experts say it is—if not better. Explaining that affordability measures “the burden of mortgage payments relative to income,” Diggle notes that the latest data from the National Association of Realtors shows that a family earning the median income has 178 percent of the income necessary to qualify for a mortgage on a median-priced home. At the same time, typical mortgage payments currently average 17 percent of median income, up from recent months but below the long-run average of 22 percent. In the firm’s latest US Housing Market Focus, Diggle notes that long-term trends show prices are up 15 percent below their trend level, with the ratio of Case-Shiller prices to disposal incomes per capital pointing to housing being about 16 percent below fair value. However, when comparing median household income to median home prices, Diggle says housing looks “no better than fairly valued.”
4 Financing Tips For Your Rental Property! Team Thayer #realestate #realestateinvestor #investor #housing #market #rentals #mortgage #news #oregon
With the spring real estate market firing on all cylinders, it’s no wonder we are seeing investors come out in record numbers. Real estate exit strategies ranging from wholesale deals to full rehabs have become incredibly attractive in today’s housing industry. However, one strategy in particular looks to be in a great place: buy and hold rental property . Cash flow opportunities are through the roof, as rents are soaring in nearly every city from San Diego to New York . Now may be one of the best times ever to acquire a rental property. However, those that have yet to do so should mind due diligence and consider what they are getting into before they make the jump. While there are a myriad of things potential landlords should consider before financing their first rental property, I highly recommend starting with the following four: Rental Property Consideration 1: The Numbers Prospective rental property buyers must run the numbers to see how much they can afford