Home Affordability Increasing: Is Real Estate Becoming More Affordable?

Home affordability is increasing slightly as home prices have dropped and interest rates are much less than they were just 6 months ago. Although the 30 year fixed mortgage is currently around 6.2% that is more than 1% less than it was in November 2022 and home prices are less. Year over year home prices are about the same nationally and down about 5% in Las Vegas.

Home affordability is made up of a few factors including wage growth, interest rates and home prices. Also as rent prices rise it because more affordable to buy instead of rent since homeowners can lock in a fixed rate for their monthly home payments and not have to worry about a landlord raising their payments every month.

The inventory shortage in the US and under building of new homes is likely to cause single family houses to continue to rise in value for years to come.

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