The Commonwealth Blog

Wednesday, April 1, 2020

Can You Still Afford a Home?

So far, 2020 has been a big year for residential real estate. The statistics show an increase of over 7% in existing home sales. According to Zillow, the median home value in the United States is growing. With this in mind, is right now a good time to buy a house?

Why Buy a House?

For most households, most of the time, buying a home is a smart move. If you want to see some reasons why, check out our article “6 Benefits of Owning a Home.” Although it’s generally understood that owning a home is a good thing, many people believe the goal is out of reach for them, especially as real estate prices continue to rise.

Price Isn't the Only Concern

If you're thinking of buying a home right now, price increases aren’t good news. However, there are other factors that determine your buying power. A real estate professional would caution you that the price of a home is less important than your overall cost. Factors such as the interest rate and terms of your loan may have a significant impact on your monthly payment.

How Much Should You Spend?

How much can you afford to spend on a new property? There is no simple answer to the question, especially because it differs based on each individual’s situation. For instance, do you have kids? How stable is your employment? The conventional wisdom states that you should spend no more than 30% of your take-home pay on housing.

Even if home prices keep rising, the low interest rates we’re seeing today mean that most working households can still buy a home. If your income is stable, you plan to stay in one place for at least a few years, and you can afford the monthly payment, buying a home is probably a smart move for you.

Get Professional Advice From a Realtor

The best move you can make to figure out exactly which houses you can afford is to speak with a real estate professional. The experts understand the local market better than anyone. Contact a realtor today and see if buying a home makes sense for you.

Loading Property Compare
Perfect Fit Buyer Registration
Request a Home Evaluation

Mobile Search

Use any internet enabled phone to search every home for sale in our area! More

Homes Like Mine

Find the approximate value of your home by comparing your home’s criteria to homes that are currently for sale.


Home Updates


This Week

Open Houses 1533 New Listings 1753 Bank Owned 273

These Listings Updated Daily

Boston Real Estate by City

Berkshire Hathaway HomeServices Commonwealth Real Estate | 12 Huron Drive, Natick, MA 01760 | Phone: (508) 810-0700

© 2021 BHH Affiliates, LLC. An independently owned and operated franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of Columbia Insurance Company, a Berkshire Hathaway affiliate. Equal Housing Opportunity. Equal Housing Opportunity
Information not verified or guaranteed. If your home is currently listed with a Broker, this is not intended as a solicitation.

Terms of Use/Privacy Policy | Agents Only | Library
Built and powered by Constellation Web Solutions