Top Reasons to Buy Real Estate in Kokomo, IN -
Part 2 (Affordabiltiy)
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Why Buy Real Estate inKokomo?
Affordability!
In The Top Reasons It’s a Great Time to Buy Real Estate in Kokomo – Part 1, we talked about the fact that there has never been a better, wider selection of homes on the market in all price ranges. Today, we are going to talk about how “affordable” homes are in Kokomo and all of Howard County compared to the rest of the country. That means you can buy more house for your money here in Kokomo than in any other city in the entire United States! Not only that, but you can buy more house in Kokomo today than you could just a year ago!
Let me explain…
The National Association of Home Builders and Wells Fargo Bank just published their most recent Housing Opportunity Index which named the Kokomo area the most affordable city in the country. They use formulas to come up with the median local household income and compare that income to the price of homes in our area. They came up with a local median household income of $59,700 and an affordability rating of 90.5%. What that means is that if your household income is $59,700 a year you could afford to buy 90.5% of the homes on the market in the Kokomo area today. Translation – you could buy any of 875 homes on the market today!
Now, let’s say your household income is half that amount – $29,850. A “guestimate” would be that you could afford to buy any of over 400 houses for sale in Howard County right now!
Let me qualify that last paragraph a bit…
What that tells us it that, based on income, you could afford to buy many of the houses for sale in Howard County. It doesn’t tell us whether you can buy a house! And there is a big difference!
Whether you can actually buy a house depends on what you have done in the past! If you have good credit, pay your bills on time and don’t have a lot of debt, you can probably buy a house. Even if you have a few dings in your credit, you may still be able to buy. There is only one way to find out for sure and that is to contact a lender – get yourself preapproved for a loan!
If you haven’t done so already, be sure to read about the importance of getting a preapproval for a loan. If you need the names of some good local lenders, just give me a call or send me an emal, I will be happy to recommend some lenders.
One more point along these lines is that interest rates have declined a little in the past week. I also read that the “Fed” is meeting again soon and economists are forecasting that they may reduce the prime rate again. That may or may not have impact home loan rates, but we can always hope!
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