Truth about Housing Affordability

The Ultimate Truth about Housing Affordability

The Ultimate Truth about Housing Affordability | MyKCM

There have been many headlines decrying an “affordability crisis” in the residential real estate market. While it is true that buying a home is less affordable than it had been over the last ten years, we need to understand why and what that means.

On a monthly basis, the National Association of Realtors (NAR), produces a Housing Affordability Index. According to NAR, the index…

“…measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.”

Their methodology states:

“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.”

So, the higher the index, the more affordable it is to purchase a home. Here is a graph of the index going back to 1990:

The Ultimate Truth about Housing Affordability | MyKCM

It is true that the index is lower today than any year from 2009 to 2017. However, we must realize the main reason homes were more affordable. That period of time immediately followed a housing crash and there were large numbers of distressed properties (foreclosures and short sales). Those properties were sold at large discounts.

Today, the index is higher than any year from 1990 to 2008. Based on historic home affordability data, that means homes are more affordable right now than any other time besides the time following the housing crisis.

With mortgage rates remaining low and wages finally increasing, we can see that it is MORE AFFORDABLE to purchase a home today than it was last year!

Bottom Line

With wages increasing, price appreciation moderating, and mortgage rates remaining near all-time lows, purchasing a home is a great move based on historic affordability numbers.

Fish for Free in Tennessee!

Fish For Free In TN
June 8, 2019 – Fish for free in TN
(Photo courtesy of my daughter enjoying time at the lake when she was a little girl!)

When I was a young girl, my parents often packed a picnic lunch and took my brother and I to a forest preserve to fish on the banks of the river. I think Dad probably spent most of his time getting my hook out of the tree branches above and I’m sure I talked way too much, but it sure made for some great memories. I can still remember the river bank, the stinky outhouses, the playground equipment and Dad & Mom just being relaxed. There were no cell phones in those days, so when we went, Mom had a true break from real estate calls and Dad got a nice break from the hot factory. I think sometimes in today’s world, we can forget to unplug and the importance of doing so once in a while.

We grew up on 10 acres surrounded by cornfields and soybean fields, but there was a small creek two homes over. Once in a while when we were older, my brother and I would sometimes venture across the street and over to the creek. The neighbors were super sweet and the setting was gorgeous. I don’t believe I went with him too often, but I have a very fond memory of brother-sister time.

We also fished in Wisconsin a lot. Often times, it was Door County, Wisconsin while camping in Penninsula State Park. (Gorgeous places to go, it’s been many years since I have been, but I highly recommend a trip North!) There were many Wisconsin fishing and boating locations, too many to share. But a great deal of my memories as an older child, young adult and while raising my daughters include time at a lake home. Memories I wish I had made more of, but am super glad my girls made a ton!

However, I don’t believe I have had a fishing pole in my hand since before July of 2005. It was such a big part of my life growing up and that of my daughters, but I have ventured away from it as I grew older.

Free Fishing Day may be a good time to grab a pole, pack a picnic lunch like Mom used to do and head out!

Many states offer a free fishing day where young and old alike enjoy a day of fishing without the need for a fishing license. In 2019, that day is Saturday, June 8th for Tennesseans. If you’d like to check for dates in other states, this website seems to provide a great list.

Tennessee Wildlife Resources Agency offers a great deal of resources on their website, including this link for Kids! Go out, make some memories and take a photo or two like this one from about four decades ago. The memories are priceless.

Where are some great spots in TN to fish? Ask your local bait shop, or small gas station on the side of the road close to the nearest body of water near you….I bet they’d have some good ideas. But if you’re an internet reader, there are plenty of links to find top fishing opportunities on line.

AND…if you’re wanting to buy a home near water or even a lake home here in Middle TN, let one of us at Maroney Real Estate know. We’d be honored to assist you!

FIshing With the Family
Dad, one of my brothers and I after a fishing day.
Notice we are both holding on to the fish!
Guide to Fishing in TN

For Licensing Info:

That’s fishing and other licenses!

For info on obtaining a Real Estate License in TN, please give me a call at: 931-389-4MRE or 615-653-1137.

And don’t forget to share your photos with us when you go fishing this summer! #maroneyrealestate or #mrepicsaroundmiddleTN

Tips for Moving with Children

Planning a move with children?

Getting to know the children involved in a real estate transaction is one of the joys of this career. Throughout the house hunting process, some kiddos have nicknamed me Grandma Michel and another, Aunt Michel. It sure did warm my heart!

In addition to the honor of handing over the keys to their new home, I have had the pleasure of entertaining several children while their parents sign closing documents. They are all such blessings.

Though handing over the keys is exciting and house hunting can be enjoyable, I get that packing and the actual move can be a stressful time, especially for children. Here are just a few tips to make the transition a bit smoother

Hopefully, these tips are of help!

As for buying or selling, I am here to help with any questions you might have!

National Rescue Dog Day, May 20

May 20th is National Rescue Dog Day! Many of us have a four legged friend we love. How many of you have a Rescue Dog?

I lost the one I referred to as my rescue Dog shortly after we moved into the home we owned in Smyrna, TN during the summer of 2015. She is now in doggie heaven, but Polly was a sweet dog.

In 2009, I went to bring her home. I had been facing some rough times and the company of a fur baby was just what the doctor ordered. She was not a rescue, but “rehomed” and about eighteen months old. It was shortly after arriving at the meeting location that I and the young friend who accompanied me realized this may be more than rehoming. While I didn’t bring her home with us from a shelter or a rescue organization, I feel our family may have rescued her.

She was so pathetic looking. The back half of her was grossly shaved down, the front half long, unkempt and matted; hair hanging in her eyes, wet from being sick in the car, and covered in fleas. I asked if she was potty trained. The reply I received was, “Welllll, when we get home we take her out. If she goes potty she gets a treat and if she doesn’t she gets put back in her kennel.”

On the way home, she laid on me and just looked at me as if to say thank you. I’ll never forget the look in her eyes. Once home, the one I loved bathed her and gave her a haircut, so lovingly. She was looking more loved and cared for right away.

The weeks that followed brought even more trying days in my life and Polly was always right there. One day I will never forget—She came up to me and sat in my lap, licked my cheek as tears were falling and didn’t leave my side for several hours. She was the first pet I allowed to sleep at the foot of my bed. [Okay, so she slept on top of the covers at the bend of my knees!]

I may have kind of rescued this sweet girl based on her condition, skiddish/scared ways and a few things I had been told, but Polly….Polly rescued ME. 💗 And I will never forget her.

Rescue pups need us. They need love and someone to give them another chance.

The National Day Calendar website tells us, “National Rescue Dog Day recognizes all the benefits of allowing a four-legged canine to adopt you into their immeasurably lovable life.

According to the ASPCA, approximately 3.3 million dogs enter shelters every year. When these abandoned and abused animals find their way to a shelter, each one needs a forever home and their potential is limitless.”

If you rescue a Dog today and are within an hour of Bell Buckle, TN, let me know! I have some photography experience and I’d love to treat you to a family photo with your new fur child before the end of June!

And if you have already added a rescue dog to your family, please share your photos on my Facebook page. I’ll share a link to this blog and would love to see your photos in the comment section.

You never know, your rescue pup story may just inspire someone else to bring a rescue home also!

Just a few places you may be able to adopt in Middle TN: