According to a new report from Beacon Economics, buying a house or a residential property is much more affordable compared to real estate rate for the past decades. This year’s residential property sales are having a strong and stable performance, especially from elite quality residential real estate market.
By using median home and income rates, Beacon economics said that an average American company needs to spend only 16.9 percent of their income on the mortgage payments for a residential property.
This data is the lowest rate since its availability back in the year 1969.
Beacon Economics is founded just for years ago, in 2006, but it has captured the attention of people from the real estate industry. The company is known for the forecast of the sub prime housing market meltdown, and calculated correctly the depth of the global economic and financial crisis that followed shortly.
Jordan G. Levine, Beacon Economics’ research manager believes that the housing crisis is now lifting, even though prices may still change discreetly for the next couple of months.
Levine also expects that prices should for any residential property would be stabilizing into the current situation, but it will be more than likely to get better in the next 12 months.
Researchers said, with the affordability level of a residential property, most market participants like developers with frozen projects and potential buyers will enter the real estate market. This could mean that they could recover from the prices from recent turn-downs.
The trend of stabilizing the residential property prices may already be taking place—slowly.