Prices have been on the rise for nearly three years in most markets, but low interest rates and an improving economy are keeping first-time and repeat home buyers hopeful.
So as we return to a balanced market nationally, we wanted to know: what are truly the best markets for today's buyers? Where can you not only afford a home with ample square footage, but also find plenty of these larger homes available?
Below, we identify the top ten markets for buyers, in terms of affordability by square footage and the percentage of affordable properties that exist in the market.
Here are the top 10 most affordable and accessible markets for buyers:
Here are the 10 least affordable and accessible markets for buyers:
Junior high English teacher says, Define your terms:
Affordable Square Footage: The total amount of building area that is affordable in a given area
Interest Rate: The current, average interest rate for 30-year, fixed conventional mortgages (At time of calculation, this was 4.15%)
Median Income: The median family income in this area
Median Price: The median, estimated home price in this area
Median Price Per Square Foot: The median estimated value per square foot of a property
Median Square Footage: The median building size in square footage for this area
Monthly Payment: The estimated monthly mortgage payment for the median value of homes in this area
Qualifying Income: The income necessary to qualify for a loan for the median value of homes in this area
Qualifying Income Ratio: The percent relationship between the median income and the qualifying income in this area
Junior high math teacher says, Show your work:
Affordable Square Footage = (Median Square Footage * Qualifying Income Ratio) + Median Square Footage
Qualifying Income Ratio = 1 - ((Monthly Payment * 48) / Median Income)