Everybody knows that the recession has caused the prices of homes to stagnate, resulting in a rather bleak real estate landscape for home sellers. On the other hand, the situation presents fantastic opportunities for home buyers. Since interest rates are lower, prices of homes are stable or lower, and income needed to qualify for home mortgages has fallen drastically, the advantage clearly swings to the side of home buyers.
According to the Washington Post study, homes have become more affordable across the State of Maryland. In 2011, there are only two Zips that require an income of over $200,000, down from 14 Zips in 2007. Four years ago, there’s only one Zip for home buyers with income of less than $50,000 but today, there are 37 Zips with home affordability income of below $40,000. In the suburbs of Maryland and Virginia, there are some 36 Zips where the home affordability income has fallen by a whopping $55,000 in just four years! Home purchase interest rates have fallen from 6.58% in 2007 to 4.62% in 2011. For a single family home, the median price has fallen from $424,000 in 2007 to $329,990 in 2011. The income needed to purchase a home has fallen from $103,776 in 2007 to $65,088 in 2011.
As you can see, these are major drops, representing a significant advantage for home buyers. If you have an eye on your dream Dunkirk real estate, now’s the time to strike, fast!

