• Skip to main navigation
  • Skip to content
  • Skip to footer

Albuquerque Real Estate | Venturi Realty GroupAlbuquerque Real Estate | Venturi Realty Group

Top Albuquerque Real Estate Agents | Venturi Realty Group

  • Search
    • Advanced MLS Search
    • Just Listed
    • Open Houses
    • Map Search
    • Foreclosures
    • New Construction
      • New Home Neighborhoods
    • Commercial Properties
    • Vacant Land Search
    • MLS Maps Search
    • Homes by Zip Code
  • Lifestyle
    • Luxury Homes
    • Condos, Lofts & Townhomes
    • Homes With a Swimming Pool
    • Green/High Perf Homes
    • Homes With A View
  • Communities
    • All Albuquerque
    • Far Northeast Heights Albuquerque
    • Near Northeast Heights Albuquerque
    • Westside / Northwest Albuquerque
    • North Valley Albuquerque & Los Ranchos
    • Downtown and UNM Areas Albuquerque
    • Southwest and South Valley Albuquerque
    • Southeast Areas Albuquerque
    • Rio Rancho, NM
    • East Mountain Areas
    • Valencia County Areas
    • Corrales, NM
    • Placitas, NM
    • Bernalillo, NM
    • Santa Fe, NM
    • Communities Map
  • Buyers
    • Things to Consider When Buying a Home (Winter 2021)
    • Home Buyer Wish List
    • VIDEO – Steps to Buying a Home
    • VIDEO – Home Financing Options
    • Free Relocation Guide
    • Mortgage Calculators
    • Emailed Listing Alerts
  • Sellers
    • Things to Consider When Selling Your House (Winter 2021)
    • Sellers Guide – Fall 2020
    • Home Selling Consultation
    • Video – Preparing Your Home for Sale
    • Home Seller Videos
    • Path to Sold
  • About
    • Blog
    • About Us
    • Meet the Team
    • Real Estate Talk Radio and Podcast
    • Featured Homes
    • Testimonials
    • Experience
  • Market
    • Latest Market Data
    • Real-Time Market Conditions
    • 10-Year Market Trends
    • Current Market Profile by Zip Code
    • Inventory Tracking Project
    • Luxury Market Tracking Project
  • 505-448-8888
  • Email

47% of New Buyers Surprised by How Affordable Homes Are Today

47% of New Buyers Surprised by How Affordable Homes Are Today | Simplifying The Market

Headlines matter. Right now, it’s hard to read about real estate without seeing a headline that suggests homes have become unaffordable for most Americans. In reality, there’s hard evidence that shows how owning a home is more affordable than renting in most parts of the country, as record-low interest rates are keeping monthly mortgage payments about 23% lower than the typical payment of 20 years ago. Despite the facts, misleading headlines persist, and they impact how hopeful homebuyers perceive the market.

In a recent survey by realtor.com, home shoppers indicated they were surprised by what they could actually afford when buying their first home. In fact, 47% discovered their budget was larger than they expected. George Ratiu, Senior Economist at realtor.com, explains:

“For first-time buyers, especially, the drop in the 30-year mortgage rate…has provided unexpected leverage. Lower rates allowed many buyers to stretch and buy more expensive homes while keeping their monthly budget the same.”

So why do these negative headlines that cast doubt on affordability continue to exist?

Most analysts only look at two of the three elements that make up the affordability equation: price and income. It’s true that incomes haven’t kept up with the price of houses. However, affordability is about the cost of the home, not just the price. For that reason, mortgage rates, the third element of the affordability equation, are important to consider.

For example, here’s the typical mortgage payment for assorted dates going back to 2000, as calculated by CoreLogic:47% of New Buyers Surprised by How Affordable Homes Are Today | Simplifying The MarketOutside of the housing crash (when short sales and foreclosures drove prices down), it’s more affordable to buy a home today when you consider all three elements of the affordability equation: price, income, and mortgage rate.

Bottom Line

Whether you’re a first-time buyer or a move-up buyer, don’t let the headlines scare you away from your dream of homeownership. Instead, connect with mortgage and real estate professionals to determine what you can afford and what’s available at that price. Like almost half of the buyers in the survey, you may be pleasantly surprised.

Posted in: Buying Myths, First Time Home Buyers, For Buyers, Housing Market Updates, Interest Rates, Move-Up Buyers, Pricing

Post navigation

« Selling in the Albuquerque Market: Are you leaving money on the table as a home seller?
It’s February 2021: Last month’s housing stats in the Albuquerque area »

Albuquerque Area Zip Codes We Serve

  • 87001 Algodones
  • 87002 Belen
  • 87004 Bernalillo
  • 87008 Cedar Crest
  • 87015 Edgewood
  • 87016 Estancia
  • 87031 Los Lunas
  • 87035 Moriarty
  • 87042 Peralta
  • 87047 Sandia Park
  • 87048 Corrales
  • 87059 Tijeras
  • 87068 Bosque Farms
  • 87102 Albuquerque
  • 87104 Albuquerque
  • 87105 Albuquerque
  • 87106 Albuquerque
  • 87107 Albuquerque
  • 87108 Albuquerque
  • 87109 Albuquerque
  • 87110 Albuquerque
  • 87111 Albuquerque
  • 87112 Albuquerque
  • 87113 Albuquerque
  • 87114 Albuquerque
  • 87120 Albuquerque
  • 87121 Albuquerque
  • 87122 Albuquerque
  • 87123 Albuquerque
  • 87124 Rio Rancho
  • 87144 Rio Rancho
  • Albuquerque Area MLS Map and MLS Areas List
  • Albuquerque Real Estate
  • Top Albuquerque Area Realtors

    Venturi Realty Group - Keller Williams Realty

    1119 Alameda Blvd NW Albuquerque, NM 87114

    (505) 448 8888
    info@welcomehomeabq.com

    KW Main Office Location

    6703 Academy Blvd NE Albuquerque NM, 87109

    © 2021 Venturi Realty, Inc.

    Terms of Services | Privacy Policy | Sitemap

    Responsive Real Estate Websites by HoopJumper