AFFORDABILITY ISSUES EXPECTED TO DAMPEN HOME PRICE GAINS Joe L. Fisher
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here are usually concerns about the affordability of a home because housing is the largest expense in the budget of many people. Many average households in the country usually devote a quarter of their income to taking care of their housing expenditures, while low-income households spend half of their income on housing. This therefore shows that the changes in house prices can significantly impact a household’s wellbeing. There have been many reports about the increase in house prices, which has made housing affordability a major concern in many areas. Affordability sums up several issues like housing WWW.THEPOWERISNOW.COM
prices, housing quality, income distribution, and many household’s abilities to get enough home loans. There are many varying factors that have affected the supply of new homes in the market, and it also plays a role in housing affordability as a low supply of homes clearly leads to an uprise in the price of homes. This sometimes makes people go for a lower housing quality to be able to afford a house. Home prices have been reported to rise by about 1.1% in November; this research was carried by CoreLogic and was reported on its Home Price Index. There has been an over 8% increase for the year over year gain, and this l
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