December 13, 2017
It may continue to become more difficult to buy a home in the Atlanta metropolitan area
It’s becoming more difficult to own a home in Atlanta. “As you likely know from your own income, overall wage gains continue to be muted, rising at about a 2.5 percent annual rate, so the ability of a potential homebuyer to keep up is increasingly difficult, if not impossible. Just to keep pace with rising prices, year-over-year income gains needed to be in excess of 10 percent in about one third of all metros (plus more than 9 percent in another nine). In fact, even in Hartford (where prices managed to ease) the influence of taxes and insurances means that the income needed to buy even that lower-priced median home was still some 3.56 per higher this year than last.” – HSH – Atlanta The study suggests that to live in metro Atlanta that an income of at least $43,388.44 is necessary in order to afford a home.
“Mortgage rate: 4.01 percent
- Quarterly change: -0.1 percent
Home price: $204,300
- Quarterly change: -0.29 percent
- Year-over-year change: +6.68 percent
Monthly payment: $1,012.40
- Quarterly change: -$504.85
- Year-over-year change: +0.1 percent
If homebuyers in the Atlanta metro put 10 percent down instead of 20 percent, the required salary increases from $43,388.44 to $50,105.27.”
It’s not as bad in our area as it is in many other parts of the country but the wages are down and values are up. The conclusion being that if trends continue to move in their current direction and you are thinking about buying a home then now is a better time to buy than in the future where you can expect to have less and less buying power.