Archive for October, 2014

How much do you spend on a house payment?

Friday, October 10th, 2014

What percent of your income goes to pay rent? Is it 10% or 20% or 30% or more? How does that compare to a house payment? Your house payment depends on the price of your house and mortgage amount. There is a wide range of prices for the same size house depending on where you live. Coastal areas and the Northeast are much higher then the Midwest and South. Affordable housing and a good job market tends to attract younger workers. Demographic researchers describe those born between 1977 and 1992 as ‘Millennials’.  The ‘millenials’ population in certain markets keep increasing. Jobs and affordable housing are key reasons. Here are a few of the affordable places to live:

Metro area Payment/Income Home price Income
Augusta,GA 10.52% $64,100 $37,561
Fayetteville, NC 13.14% $97,500 $45,742
Atlanta, GA 13.98% $111,600 $49,200
Jacksonville, FL 13.99% $99,000 $43,621
Philadelphia, PA 14.06% $81,675 $35,801
Baltimore, MD 14.35% $90,000 $38,655
Little Rock, AR 14.81% $122,000 $50,768
Columbus, OH 15.26% $125,000 $50,502
Omaha, NE 15.35% $128,000 $51,392
Milwaukee, WI 15.62% $108,000 $42,611

Your buyer needs a job

Tuesday, October 7th, 2014

well, there is good news on this front. 4.84 million job openings are available right now. That is the highest number since January, 2001, according to the U.S. Department of Labor. Workers moving to your area to get a new job means motivated buyers. Workers getting new jobs for higher pay means they can afford to buy a larger home. For those buyers getting new jobs, they better hurry to lock in the low mortgage interest rates. The Federal Reserve has kept rates very low for a very long time for only one reason. They want unemployed workers to get jobs. Lowering the unemployment rate has been their main reason for keeping rates low. Improvement over the past six months now has the national unemployment rate at 5.9% (lowest since July, 2008). This has opened the window for mortgage rates to rise. We have said many times, once rates start to rise, they will rise very quickly.