“Stagnant incomes, higher home prices and climbing mortgage rates made affording a home a lot more difficult for the average homebuyer during the second quarter.
Of all homes sold between April and June, 69.3% were affordable to a family earning the median income of $64,400, according to an index compiled by the National Association of Home Builders (NAHB) and Wells Fargo. That’s down significantly from the first quarter, when 73.7% of homes sold were affordable and from late 2011, when affordability peaked at 78%. “1
In the past several years economists seem to agree that housing affordability has been at historic highs driven by favorable mortgage rates and low prices caused by the recession.
This seems to be ending now that home prices and rates have been on the rise in many parts of the country.
“The median price for new and existing homes sold in the second quarter of 2013 was $202,000 “1
“Mortgage rates were at 3.99% for a 30 year fixed-rate note versus 3.68% just 3 months ago as reported by NAHB and Wells Fargo.”1
Some markets in the states of Utah, Illinois, Pennsylvania and Ohio are amongst the most affordable where the medium income earner can afford 92% of the homes sold in those areas.1
In many markets seller financing is still driving sales of existing homes, as you can see in the table below. 2
| State | Count | Percentage |
| Texas | 23,780 | 23.0% |
| California | 10,517 | 10.2% |
| Florida | 9,372 | 9.1% |
| Arizona | 4,646 | 4.5% |
| North Carolina | 4,165 | 4.0% |
| Georgia | 3,877 | 3.8% |
| Washington | 3,460 | 3.3% |
| Ohio | 3,300 | 3.2% |
| Oregon | 2,185 | 2.1% |
| Tennessee | 2,183 | 2.1% |
| Top 10 | 65.3% |
With the exception of Ohio, none of the above mentioned “affordable” states have significant sales driven by owner financing. It can be inferred that in the most affordable states buyers can still qualify for and get traditional bank financing reducing the need to consummate the sales contract using owner financing.
**********
If you currently own a real estate note and are in need of immediate cash, we would like an opportunity to bid on and possibly BUY YOUR NOTE! With over 20 years experience in the private note industry, our experienced staff is available to provide you with a quick quote and help make it easy for you to get the most for your note. Visit us today at www.notebuyingusa.com or contact us at 1-877-399-1211. If you are considering offering owner financing when you sell your property, please click here to receive your free copy of “10 Critical Steps to Creating a Sellable Note”.
This information is intended to be used as a general guide. It is not intended to constitute legal advice and is not a substitute for the advice of an attorney. While every effort has been taken to present the information accurately, this document may not be infallible. No warranty is made that these materials are current, complete, accurate, or suitable for any particular purpose. You should seek advice from your attorney before proceeding with any real estate transaction.
Source(s):
- Owner Financing Statistics for Note Buying”, Bilderberg Financial, February 1http://bilderbergfinancial.com/owner-financing-statistics-for-note-buying/2, 2013, Date Retrieved 08/23/13.
- Owner Financing Statistics for Note Buying”, Bilderberg Financial, February 1http://bilderbergfinancial.com/owner-financing-statistics-for-note-buying/2, 2013, Date Retrieved 08/23/13.
