Middle-class homebuyers find affordable markets across the country
Posted on Friday, October 11, 2013 at 10:24:13 AM
Middle-class and first-time homebuyers are several important ingredients to the overall housing recovery. Ideally, segments such as these will continue use residential financing to buy homes all across the country, although middle-class buyers are finding some markets just right, while others are too expensive.
The "American Dream" has always included homeownership, and some regions in the U.S. are better suited for this goal than others, according to Trulia's chief economist Jed Kolko.
Kolko analyzed median home prices for major markets compared to household income, and identified several great locations where many properties are within reach of the middle class.
For instance, Los Angeles has 24 percent of all homes for sale considered affordable by the middle class, while Miami has 51 percent and Chicago has 73 percent. Overall, the Midwest is the most cost-effective region for this demographic, with more than 80 percent of all homes considered affordable, based on the median household salaries.
While many buyers rely on residential financing to acquire their dream homes, values and prices can derail plans quickly.
First-time buyers, like many within the middle class, should always make sure their credit is in line before buying, according to Bankrate.com. Credit reports are a must, and proper planning can make all the difference.
Overall, spending should be planned. Middle-class buyers can pick the best markets for affordability, and feel confident taking the plunge.