3 Factors Affecting Home Affordability

In this article, we will discuss the three main factors that define home affordability in Palm Coast, Florida. If you're considering a move to Palm Coast and want to understand what home affordability means, you've come to the right place. We will delve into the factors of mortgage rates, home prices, and wages to give you a comprehensive understanding of the current state of home affordability in the area.

Mortgage rates have seen a decrease in recent months, providing some relief for potential homebuyers. While they may not drop as low as the rates seen during the pandemic, experts predict a continued decline throughout 2024. Although there may be fluctuations along the way, the overall trend is expected to be a decrease. Lower mortgage rates can significantly impact your purchasing power, making it easier for you to afford the home you desire and reducing your monthly mortgage payments.

After experiencing a normal pace of increase in 2023, home prices in Palm Coast are expected to continue rising moderately by about 2% in 2024. Despite the new inventory coming onto the market, primarily from new construction, there is also an increase in buyer demand due to lower interest rates. This imbalance between supply and demand means that there are not enough homes for all the people who want to buy. While home prices are projected to go up, they are not expected to skyrocket like they did during the pandemic. If you're ready to buy, it's advisable to do so now before prices continue to increase and the market becomes more competitive.

Another factor that affects home affordability is wages. Currently, income is on the rise across the nation, which is a positive development for home affordability. Higher wages improve affordability by reducing the percentage of your income that goes towards paying your mortgage. When you don't have to allocate as much of your paycheck towards housing costs, it becomes easier to afford a home.

In summary, home affordability in Palm Coast, Florida, is influenced by three main factors: mortgage rates, home prices, and wages. The good news is that all three factors are currently moving in a positive direction for buyers. Mortgage rates have decreased, making it easier to afford a home and reducing monthly mortgage payments. While home prices are expected to rise moderately, they are not projected to skyrocket like during the pandemic. Rising wages across the nation also contribute to improved affordability by reducing the percentage of income needed to pay for housing.

If you're considering buying a home in Palm Coast in 2024 or thinking about moving to the area, it's a great time to have a conversation with a real estate agent and start building your team. Don't wait too long, as prices are expected to continue increasing and more buyers may enter the market, making it more competitive.

Want to know more? Watch this video from our YouTube Palm Coast Florida Living.