New Jersey Home Affordability hits Record High

Dated: 07/07/2012

Views: 4918

The National Association of Realtors reports that the home affordability index for New Jersey hit an all time high in the first quarter of 2012.  The index for New Jersey hit 174.3.  That means that the median income of a New Jersey resident is 174.3% - or almost twice - the amount needed to qualify to purchase the median priced home in New Jersey. 

 

The index is arrived at by comparing the median income of a New Jersey resident to the principal and interest payments necessary to amortize an 80% mortgage on a median priced home.  The mortgage payments are computed at the prevailing mortgage interest rates for a conventional, 30 year mortgage.   

 

This means that homes in the Manahawkin and Barnegat area can be purchased for less than they can be rented even if the buyer puts very little money down.  When you add to that the wide selection of available homes for sale in southern Ocean County, the result is a market that offers home purchasers perfect buying conditions. 

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Jeffrey Gamble

Jeff has been a full time real estate agent in Southern Ocean County since 1973, so he knows his way around the Long beach Island territory as well as around the real estate business in general. Jeff....

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