Housing Affordability Is Historically Low, Yet People Are Still Moving

In the current real estate landscape, prospective buyers and sellers are facing challenges due to rising mortgage rates and increasing home prices, a significant shift from the trends of recent years. The accompanying graph offers a clear perspective on how today’s affordability compares with the past.

As you can see in the graph above, housing affordability is historically low. The National Association of Realtors (NAR) provides guidance on interpreting the graph’s data:

“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.”

The black dotted line on the graph marks this 100-point benchmark. A higher bar signifies greater affordability. The current scenario, depicted by the orange bar, highlights the affordability challenges caused by elevated mortgage rates and rising home prices. However, this doesn’t imply a stagnant housing market.

NAR’s data reveals that nearly 4 million homes are projected to be sold this year. Breaking down these figures:

3.96 million homes per year equals about 10,849 homes sold daily.
This translates to roughly 452 homes sold every hour, or about 8 homes every minute.

These statistics demonstrate that, on average, over 10,000 homes are sold daily nationwide. There is still active buyer and seller participation, despite the tight affordability, as people continue to relocate in today’s housing market.

Navigating the Market with a Real Estate Agent

Many are curious about how individuals are successfully buying and selling homes in these conditions. A key factor is partnering with a knowledgeable local real estate agent. These agents are adept at guiding clients through the current market dynamics and affordability challenges, offering personalized advice based on individual preferences, budgets, and needs.

Experienced agents can suggest effective strategies, such as expanding the search to different types of properties or areas, looking into builders offering discounts on new construction, or discussing buying a multi-generational home, to mitigate affordability issues. This approach can open up new possibilities for buyers and sellers alike.

Bottom Line

Contrary to the assumption that the tighter affordability has dampened the real estate market, the reality is quite different. Despite the increased costs of home buying in recent years, the market remains active. For those looking to buy or sell, success is still achievable, especially with the support and expertise of skilled local real estate agents. If you’re considering a move and need professional guidance, it’s a great time to start a conversation with a trusted local real estate expert at Countryside Homes NJ and RE/MAX Select. We can discuss what your current options may be as well as help you plan for what to expect in the 2024 housing market.

Client Testimonials for Countryside Homes NJ

At Countryside Homes NJ and RE/MAX Select, we pride ourselves on delivering exceptional service to our clients. But don’t just take our word for it—read what our satisfied customers have to say. From first-time homebuyers to seasoned real estate investors and new home builders, our clients appreciate our dedication, expertise, and commitment to their success. Here are some of their stories.

David R. New Homeowner

Collaborating with Keith LaBrunda and Heather Montalbano from Countryside Homes NJ and RE/MAX Select streamlined the home-buying process for me. They were attentive to my needs and preferences, ensuring they understood exactly what I was seeking in a home and what was within my financial comfort zone. Keith and Heather provided invaluable assistance during the offer stage, sharing insightful details that enabled me to place a successful bid on my desired property. They recommended associates to assist me with securing a mortgage, conducting home inspections, and acquiring homeowner's insurance. Post-purchase, they continued to be a resource, suggesting local companies to contact for internet, water, waste management, oil, and other essential services. The experience of purchasing a home with Keith LaBrunda and Heather Montalbano was seamless and enjoyable.

Rachel and Andre First Time Homebuyer

As first-time homebuyers, the process of finding and purchasing a home felt daunting. But from the moment we reached out to Heather and Keith at Countryside Homes NJ and RE/MAX Select, our worries were put to rest. Their team was incredibly patient, answering all our questions and guiding us through every step. They took the time to understand our needs and preferences, ensuring that we found the perfect home in a neighborhood we love. We were especially impressed by their vast knowledge of the local market and their commitment to ensuring we got the best deal possible. We can't thank them enough for making our dream of homeownership a reality. If you're in the market for a new home, we highly recommend Heather and Keith at Countryside Homes NJ and RE/MAX Select. They truly go above and beyond for their clients!

Prestia Family New Homeowners

From the moment we began our home search, Heather at Countryside Homes NJ and RE/MAX Select stood out as the epitome of professionalism and dedication. Her team's in-depth knowledge of the Rockaway Borough area and their unwavering commitment to our needs made our home buying journey not only smooth but truly enjoyable. As new homeowners in Rockaway Borough, NJ, we can confidently say that choosing Heather at Countryside Homes NJ and RE/MAX Select was the best decision we made. Her expertise, patience, and genuine care for our family's needs transformed what could have been a stressful process into a memorable and joyous occasion. We are beyond grateful for her support and would highly recommend her and her team to anyone looking to find their dream home. Thank you for turning our dreams into reality!