Latest trends show affordable home prices outstripping incomes, though interest rates still low for now


HAGERSTOWN, Md. (WDVM) — Have you been thinking about buying a new home? The inventory of affordable properties may have passed you by.

Prices are rising at a record pace, but incomes are not keeping up. The demand for new homes during the pandemic has made this a seller’s market with a shortage of choices for prospective purchasers.

Data show the biggest impact of this trend is hurting first-time home buyers. Typically buyers spend about 29% of their incomes on a mortgage, but with rising prices, that is now up to 32%.

“The buyers look at the property and they love it and they want to make an offer, but they’re like, ‘Can I think about it for a day or two?’ There is no thinking about it. It’s created urgency to buy. It is an incredible time to sell — a great time to buy due to the interest rates,” said Cathy Wantz, principal with Real Estate Today.

While Wantz says that interest rates are still low — which works in favor of the buyer — predictions for higher inflation may make this a short-lived situation for buyers.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Local News Headlines

Maryland Forecast

More Weather


Don't Miss

More Local News

Trending Stories