Your Friends Are Crazy Wrong If They're Telling You Not to Buy
November 16, 2017 | Ben Pickthorn
The current narrative is that home prices have risen so much so that it is no longer a smart idea to purchase a home. Your family and friends might suggest that buying a home right now (whether a first-time home or a move-up home) makes absolutely no sense from an affordability standpoint. They are wrong!

Homes are more affordable right now than at almost any time in our country’s history except for the foreclosure years (2009-2015) when homes sold at major discounts. As an example, below is a graph from the latest  Black Knight Mortgage Monitorshowing the percentage of median income needed to buy a medium-priced home in the country today in comparison to prior to the housing bubble and bust.
Your Friends Are Crazy Wrong if They're Telling You Not to Buy | MyKCM
As we can see, the percentage necessary is lessnow than in those time periods.
The Mortgage Monitor also explains that home affordability is better today than it was in the late 1990s in 47 of 50 states.

In Oregon, California, and Hawaii home owners and sellers have benefited from the lack of inventory through increasing home values and sale prices that have far exceeded the increase in median family income since the 1990s. These are some variables that are affecting the comparison of affordability in the chart below.
Your Friends Are Crazy Wrong if They're Telling You Not to Buy | MyKCM

Bottom Line

Your friends and family have your best interests at heart. However, when it comes to buying your first home or selling your current house to buy the home of your dreams, let’s get together to discuss what your best move is, now.


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