How Much of Your Salary Goes to Your Home?

Posted by Steph Kaye on Saturday, March 26th, 2016 at 3:33pm.

Home prices are on the rise country-wide.  Interest rates continue to remain "interesting" as they continue to defy expectations of increase, thus soothing the anxious home buyer.  

The United States boasts 27 metropolitan areas where the median price of a house rests at a comfortable $222,7000.  In the fourth quarter of 2015, a 20% down payment would require a minimum income of $51,114, which is slightly belowe the median annual wage of $53,000.  

While it is quite true that all real estsate is local, a median priced home in Pittsburgh of $128,000 costs about a sixth of what it costs to buy a median priced home in San Francsico.  This means that Pittsburgh residents need only to earn an annual salary of $31,134 in order to purchase a home.  San Francisco residents would be required to bring in $150,000 on an annual basis.  

 In using local home prices as well as local mortgage rates to compare the base cost of home ownership (mortgage, principal, intereste, taxes, and insurance), but not including expenses such as utilities and maintenance, mortgage rates fell for a national average of just above four percent in all 27 metropolitan cities.  Rates have continued to drop since the beginning of the year.  

Home prices increased in almost all the cities on an annual basis.  Orlando prices grew the fastest by 13.89 percent, just ahead of Denver.

It may surprise first-time buyers to learn that purchasing a home is more affordable than renting in close to 60% of American cities.   

If you'd like to learn more about Home Ownership, please don't hesitate to message Lang Premier Properties online or call us at 1-855-526-4466.

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