Home affordability will improve into 2016
Posted on Wednesday, November 4, 2015 at 10:06:01 AM
Rarely has there been a better time to own a home than right now. According to Market Watch, home prices still hovering below pre-2008 levels, combined with low mortgage rates, mean owning a home is more affordable than it's been in nearly a decade, whereas renting is more expensive than ever before. Citing data from Zillow, Market Watch reported that renting absorbed about 30 percent of household income, compared to new mortgages, which absorbed only half that.
In October, the National Association of Home Builders stated in a press release that the housing market would continue to improve gradually in 2016 due to steady employment, affordable home prices and buyer-friendly residential financing options. The association cautioned that factors like rising material costs and labor shortages would likely keep the housing market from a more pronounced recovery, though they were not enough to slow what has been an astounding post-crisis rebound.
Jobs are key to moving forward. David Crowe, NAHB's chief economist, stated that with total U.S. employment around 142 million - more than the 138 million peak seen in 2008 - the housing market is in just the right place to grow stronger into 2016.