If you’ve been recently advised by your realtor that now it’s a good time to buy a home, take heed.
The mortgage rates are still low, while the home prices are affordable and within reach of more Americans than ever before in recent history. Besides, the purchasing power of Americans is corresponding to the overall property affordability.
This period is soon to end, as come 2015, the forecast is that the home value will rise along with the mortgage rates.
At the moment, however, if you’re searching for an affordable home, you have to keep in mind the differentiation between “big markets” and “small markets.”
Naturally, the smaller or cheaper market is away from the big metropolises, in the Midwest. The in Top 10 Most Affordable U.S. Housing Markets states like Ohio, Michigan, Iowa and Indiana rank high.
Kokomo, Indiana is the most affordable city according to a Q4 2013 report. Some 96.3% of homes there are within reach to families with median income of $60,100.
Here is a list with the other affordable cities:
Davenport, Iowa : 92.5 percent affordability
Battle Creek, Michigan : 89.2 percent affordability
Dayton, Ohio : 85.4 percent affordability
Wichita, Kansas : 85.2 percent affordability
Duluth, Minnesota : 84.4 percent affordability
Not surprisingly, on the other side of the fence with least affordable homes are cities such as San Francisco, the area of southern California and New York City.
Read the full story The Mortgage Report.