November 15, 2018 Ralph Ragette

Wage Increases Make Home Buying More Affordable


Buyer confidence and high demand remain strong in Westchester County while our local home inventory remains historically low.  Purchasing a home is one of the largest financial decisions most will make in their lifetime.  This blog’s main purpose is to help educate the consumer on the real estate process and to provide up-to-date information on our local market conditions.

Today I would like to talk to you about Wage Increases Make Home Buying More Affordable


Everyone knows that housing affordability has been negatively impacted by rising prices and increasing mortgage rates, but there is another piece to the affordability equation – wages.

How much a family earns obviously impacts how easy or difficult it is for them to afford to own a home. Because of an improving economy, wages are finally beginning to increase – and that dramatically affects home affordability.

According to the National Association of Realtors’ (NAR) September 2018 Housing Affordability Index, wages have increased in every region of the country:

Wage Increases Make Home Buying More Affordable | Simplifying The Market

After applying current salaries, home prices, and mortgage rates to their Home Affordability Index equation, the index, though still lower than this time last year (160.1 to 146.7), increased over the last month (141.2 to 146.7). For the complete methodology used by NAR, click here.

The percentage of income needed to own a home has also decreased each of the last three months. It currently sits at 17% which is substantially lower than historic numbers.

Wage Increases Make Home Buying More Affordable | Simplifying The Market

Bottom Line

If you are a first-time buyer or a move-up buyer who believes that purchasing a home is not within your budget, let’s get together to determine if that is still true.


Source: KCM Ralph Ragette Blog

To assure that you make the best possible decisions, it’s important that you have a knowledgeable agent on your side who is an expert in the local real estate market.  Our goal is to provide you with as much information as needed to make well-informed decisions throughout your home purchase or home sale in Westchester County, New York. 

To Search ALL Westchester County Real Estate Listings, visit www.Ragette.com

To reach Ralph, please call (or text) 914-202-1101 or send an email to Ralph@WestchesterHomeAdvisor.com

Ralph Ragette

Ralph Ragette, Ragette Real Estate. Ralph is a 5th generation Realtor in Westchester County New York. His firm was started by his great-great grandfather in 1885.