Affordable Housing ?

The 3 Factors That Affect Home Affordability

If you’ve been following the housing market over the last couple of years, you’ve likely heard about growing affordability challenges. But according to experts, the key factors that determine housing affordability are projected to improve this year.

Selma Hepp, Executive, Deputy Chief Economist at CoreLogic, shares:

“. . . with slowly improving affordability and a more optimistic economic outlook than previously believed, the housing market could show resilience in 2023.”

The three measures used to establish home affordability are home prices, mortgage rates, and wages. Here’s a closer look at each one.

1. Mortgage Rates

Mortgage rates shot up to over 7% last year, causing many buyers to put their plans on hold. But things are looking different today as rates are starting to come down. George Ratiu, Senior Economist at realtor.com, explains:

“Let’s celebrate some good news. . . . mortgage rates are down. With inflation showing a tangible slowdown, I do expect mortgage rates to follow suit in the months ahead.”

Even a small change in rates can impact your purchasing power. Nadia Evangelou, Director of Forecasting for the National Association of Realtors (NAR), gives this context:

“With a 6% rate instead of 7%, buyers pay about $2,700 less every year on their mortgage. As a result, owning a home becomes affordable to about 1.4 million more renters and 4.3 million more homeowners.”

If 7% rates paused your homebuying plans last year, this could be the opportunity you need to get back in the game. Be sure to work with a team of experts who know the latest on mortgage rates and can give you the best advice for the current market.

2. Home Prices

The second factor at play is home prices. Home prices have made headlines over the past few years because they skyrocketed during the pandemic. When discussing home prices in 2023, Lawrence Yun, Chief Economist at NAR, says:

“After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”

So, while prices will likely be flat this year in some markets, others could see small gains or slight declines. It all depends on your local area. For insight into what’s happening in your market and how prices are impacting affordability, reach out to a trusted real estate professional.

3. Wages

The final component in the affordability equation is wages. The graph above uses data from the Bureau of Labor Statistics (BLS) to show how wages have increased over time:

When you think about affordability, remember the full picture includes more than just mortgage rates and prices. Wages need to be factored in as well. Because wages have been rising, many buyers have renewed opportunity in the market.

While affordability hurdles are not completely going away this year, based on current trends and projections, 2023 should bring some sense of relief to homebuyers who have faced growing challenges. As Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), says:

“Rates are expected to move lower for the year, and home price growth is expected to cool, both of which will help affordability challenges.”

BOTTOM LINE....

If you have questions, connect with one of our local Real Estate Agents. If you need a referral, please let us know. You’ll also want to make sure you have a trusted lender so you can explore your financing options.

You may be closer to owning a home than you think.

*The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

There are so man ways to say Home and so many different definitions.

I recently had the privilege of talking with a couple that moved to the East Coast two years ago to “escape Portland”. While they have loved their adventure and all the new experiences that a move across the country brought them, they now are ready to “come home..” These a little bit older folks, children grown and both work remotely, and could live anywhere.

When I asked questions and pressed a bit for information, he finally said “ this does not smell like home.” Ah ! He needs Pacific Northwest air ! So we begin our adventure. Our market remains strong and is more stable than we have seen in recent years. Inventory remains low. Whether you are Buyer or Seller, now is a great time.

Do me a favor, will you ? Step away from the HGTV shows and the media hype and let’s have a conversation.

What is your dream? What is home to you? And let me help you find it.

beth@bethcaster.com

971-241-2509

Amity | $469,900: Hard to find 4 bedroom, 2 bath, single-level home on a large 1/3 acre lot. Light and bright with vaulted ceilings, 2 living rooms, dining area off living room, eating/ bar area in kitchen, patio slider leading to back yard. 2 car garage plus shop with plenty of parking for boat/RV, etc. Fresh paint, new flooring and more. Close to schools and Amity’s growing downtown of restaurants, shopping, wine tasting and more! MLS #22333769

1004 N. College Street, Newberg, OR

LISTED FOR $575,000 | MLS#22432344

2579 SF | 5bed/2.5 bath | 0.22 Acres

Amazing investment opportunity with this sprawling ranch home just blocks from George Fox University. The 5 bedrooms, 2 living rooms and 2 separate entries make this floorplan ideal for multiple housemates, multi-gen living, or a large family. Enjoy the updated kitchen, large bedrooms, an office, plenty of parking + fun backyard built for entertaining! Newer roof/gutters, exterior paint. 1/3 of a mile to GFU, Chehalem Cultural Center, Tunes on Tuesday summer concerts, and downtown Newberg.

• Double pane windows with vinyl frames

• Wood fireplace surrounded by brick

• French doors that open to backyard with beautiful deck

• Seperate office

• Beautiful wood & laminate flooring

• Wall to wall carpet in bedrooms

• Laundry room off kitchen and 2nd living room

• Built in cabinetry

• Granite kitchen counters

• Stainless steel appliances

• Granite breakfast bar with room for bar stools

• Forced air heating with central air cooling

• and much more.

REALTOR®

Mobile: (503) 435-7059 lacey@thebellacasagroup.com

207 NE 19th Street, McMinnville, OR 97128

20345 SW Pacific Hwy Suite 202 Sherwood, OR 97140

Newberg

MCMINNVILLE - SOLD

Sherwood

$89,500 ’77 GUERDON IN 55+ COMMUNITY! 2 BR / 1 BA Pride of ownership throughout. New roof, double pane vinyl windows, and crawl space water pipe insulation between 2013 to 2019. New flooring, paint, and tile countertops. All kitchen appliances stay including W/D. Heat pump and air conditioning. Fenced yard, automatic sprinklers, and covered deck. Mature yard with beautiful landscaping. Financing available OAC. #14771

NEWBERG - SOLD

$89,000 ’74 ROAKS IN 55+ COMMUNITY! 1440 sq.ft. 2 BR / 2 BA + den. Terrific location with curb appeal set on perimeter lot with a covered 10x26 patio. Shed is 10x20 with power. Split model inside with tub and shower combo in each bathroom. Kitchen has wood cabinets, new dishwasher. Washer and Dryer included. Heat pump is new with programmable thermostat. Slider to back patio. Built in hutch. Financing available OAC. Low maintenance yard.#14768

MCMINNVILLE

$79,000 ’72 FLAMINGO IN 55+ COMMUNITY! Soon to be vacant 2 BR / 1 BA home small 55+ community. Completely remodeled. New rubber membrane roof; heat pump for lower heating costs & AC. Wood laminate flooring; new kitchen appliances incl. DW & W/D. New double pane vinyl windows; new hot water heater. Tile bathroom w/ full walk in shower. All new faucets. New electrical panel. Wheelchair ramp. Small pets okay. Financing available OAC. #14764

NEWBERG - SOLD

$99,000 ’78 HOMETTE IN 55+COMMUNITY! Vacant & movein ready on corner lot. Space rent of $535/mo that includes water, sewer, garbage. 2BD/2BA, new flooring, heat pump in ‘21 with programmable thermostat, new roof in ‘22, new hot water heater, updated appliances. Open & bright home with all new paint throughout. Financing available OAC. Low maintenance yard. Covered deck is 10x26 for prime entertaining. #14760

$89,000 ’90 FLEETWOD IN ALL AGES COMMUNITY! 3 BR / 2 BA & Move in ready. Block from Columbia Elementary School & Discovery community park. Newer heat pump for lower heating cost & summer AC. All appliances incl. W/D stay. Split model for privacy w/ master on one end. Upgraded master walk-in shower. Double pane vinyl windows, Exterior freshly painted. Side by side parking. Financing available OAC. Fully fenced backyard for pets. #14769

Newberg

$125,000 ’97 REDMAN IN ALL AGES COMMUNITY! Super Good Cents 3 BR / 2 BA 1456 sq. ft. in family community. Sits on perimeter of park w/large 8x12’ workshop w/power, insulation, & window AC, Heat pump w/AC inside. Large LR w/vaulted ceilings, wood laminate flooring throughout. Island in kitchen with several skylights. New roof in ‘17. New hot water heater ‘19. Tape & texture walls, ceiling fans, WD stay. Financing available OAC. #14766

NEWBERG - SOLD

$69,000 ’15 FLEETWOD IN ALL AGES COMMUNITY! Soon to be vacant 2015 2 BR / 1 BA 784sq. ft. Fleetwood located in 55+ community with space rent of $535 inc WSG. 10 x 10 covered front deck. Hardi-plank siding. All kitchen appliances includes W & D. No dishwasher. Split model bedrooms on opposite sides. Financing available OAC. Small yard for easy maintenance. #14762

Newberg

$85,000 ’04 FLEETWOOD IN 55+COMMUNITY! Very unique 960 sq.ft. 2004 Fleetwood. 2 BR / 2 BA located in 55+ community. Solid wood cabinets, kitchen appliances include fridge and stove. No dishwasher. Master bathroom has tub and shower combo. Hardi plank siding. Soon to be vacant. Financing available OAC. Yard is small for easy landscaping. #14759

$129,000 ’96 REDMAN IN ALL AGES COMMUNITY! Stunning 2 BR / 2 BA,. Very spacious home with vaulted ceilings, tape and texture walls with soft corners. Oversized bedrroms and each bathrooms have tub and shower wrap around. Kitchen has abundant storage space - all appliances stay. Laundry room, separate family room off kitchen for premium entertaining space. Covered back credenza with shade from grape vines. Financing available OAC. #14770

CORNELIUS - SOLD

$75,000 ’79 Fleetwood in 55+ Community! Completely remodeled & modernized. Roof was inspected & sealed new in ‘22. Beautiful 2BR / 2BA in premier SR community. New flooring, kitchen cabinets, solid oak countertops, light switches, faucets, & fixtures. LR has tip out for extra space. Heat pump with AC. The home sits on a very large lot with nice covered 7 x 19 deck with a yard for entertaining & family gatherings. #14767

Lafayette

$192,000 ’95 FLEETWOOD IN ALL AGES COMMUNITY! 1512 sq. ft. Super Good Cents w/ 6” exterior walls. 3 BR / 2 BA + den.

Updated throughout. One year home warranty. Brand new heat pump. Exterior was painted and caulked for years of protection. Interior painted as well and added wanes coating. New kitchen appliances. New vinyl plank flooring. French doors in master bath. Financing available OAC. Very large fenced yard. #14761

TUALATIN - SOLD

$110,000 ’88 FLEETWOOD IN 55+COMMUNITY! Over 1500 sq.ft 3BR/2BA home located in 55+ community next to bus line. New 30yr roof, heat pump, and furnace in 2022. Vinyl windows with drop down frame. New hot water heater in 2018. Very bright kitchen with all appliances. Washer and dryer with upright freezer and garbage compactor stay. Bedrooms have walk - in closets. Electric fireplace display. Financing available OAC. #14758

THINKING OF BUYING OR SELLING? Our combined experience of over 30 years in selling real estate makes our team the go-to choice for residential home sales and negotiations. With an extensive background in rural properties we specialize in the marketing and purchasing of homes on acreage, hobby farms and bare land. Our team is available in Yamhill, Washington, Clackamas, Linn, Polk and Marion County!

WE HAVE BUYERS LOOKING FOR: SINGLE FAMILY HOMES, BARE LAND & VINEYARDS!

Call Us Today For A Complimentary Market

ANALYSIS! PENDING

SALE PENDING! 362 Garfield St., Woodburn: Investment Opportunity! Turn this into your next rental or revitalize & restore its original charm! This 1901 farmhouse sits on large .20 corner lot 2,486 SqFt, 5bd/1ba,potential 6th bdrm,living & dining rm w/original crown mold window/door trim, high ceilings, front entry foyer/mudrm, vinyl windows, original front decorative windows. Storage/mudroom addition off back of home, ample parking. Needs TLC-Cash only

ML 22543073 $249,900

JUST SOLD

8720 SW Tualatin Rd, Unit 107, Tualatin: Well maintained single level condo in convenient location. 1022sqft, 2BD/2BA, open living & dining, kitchen w/SS appliances. Fireplace, covered balcony w/storage closet, washer/dryer laundry closet. Disabled-friendly unit on 1st level with elevators from deeded underground parking spot in secure building! Small pet friendly, pet area, pool, hot tub. Exterior of condo recently updated-windows,siding,balcony. Across from heritage park,police&fire dept. No Rental Cap! ML 22668199 $264,900

507 E 5th St., Newberg: Opportunity for 1st time buyer or investor. Home built in 1935, 1 bedroom, 1 bath, attic space for possible 2nd bedroom with new stairs, buyer to verify SF, studs down remodel in 1992, newer vinyl windows throughout, newer mini-split for heat/cool, laminate flooring, steel exterior doors, great location within walking distance to downtown.

ML 22539976 $249,900

JUST SOLD

Amy Faulkner, Escrow Officer

Amy approaches each day with kindness. Her vibrant, genuine smile lights up the room. The moment she landed in our office she instantly belonged, and we were filled with the warmth of her presence.

Amy started her escrow career in 2004 right here in Yamhill County and worked in the capacity of Escrow Assistant and Escrow Closer before having her two daughters, Ella & Addie. After taking some time off to be a stay at home mom, Amy re-entered the work force again, running her own gluten free bakery for 5 years. Most recently Amy has been working as an Escrow Closer in our McMinnville Office. Her experience and positive attitude are well fitted attributes to our team and we are very excited about her promotion to Escrow Officer.

775 NE Evans St | McMinnville OR 97128

OFFICE: 503.472.4627

322 E Main St. Willamina, OR 97396

Office: 503-876-9004 Fax: 503-876-9115

Cell: 503-910-9261

Email: barbhofenbredl@yahoo.com

All Brokers Licensed in the State of Oregon

New Listing

Established INN/Motel only one in town, great investment property. INN- 7BR, 6Bath, office, full kitchen, laundry room, sauna, wine cellar, 1 apartment on 3rd floor. Motel-10 rooms, 2 linen closets and laundry room. Two cabins total of 4 rooms, common area building, 8x8 storage shed. All inventory will stay. Buildings In immaculate shape, business is operational right now, too much to list, schedule an appointment today.

Sheridan / $465,000: Country setting 1.5 acres

Main part of house w/4BD/1BA, Open concept living room & kitchen. New stove, refrigerator, & large utility room. House upgrades incl.: new paint, new roof, new siding, vinyl windows, flooring. Addition to house that could be family room, office or rec room with a wet bar and refrigerator. Deck off back 10x13, Metal shed 12x12. Room to build large shop or barn for animals.

Beautiful Views

Sheridan 44 ACRES WITH BEAUTIFUL VIEWS: 2 build-able home sites pick one and build your dream home. Perrydale water, two wells, seasonal creek, 4 bay shop is around 50x36, manufactured home no value, old barn no value, some fencing for animals. Some apple, fir and oak trees.

Sheridan / $399,000: 4 bedroom 2.5 bath home, living room, family room, bonus room, kitchen, dinning room, fireplace double sided, two car garage, large lot, property out of flood plain.

Willamina / $525,000: Beautiful country setting 10 acre property with room for all your hobbies & toys. 3bed,2bath, Open floor plan, living rm, family rm, large kitchen & lots of windows to view the impressive acreage. Land is level, acreage had cattle on it. Property line extends to midcreek along east & South sides Yamhill river. Greenhouse, wood shed, wood-working shop, 2 bay outbuilding, goat stable, chicken coop

Price Reduced

Dallas $375,000: 3.15 acres with 3 bed,1 bath FIXER UPPER. GREAT INVESTMENT OPPORTUNITY. Shop #1 30’x60’, Shop#2 19’x50’. ML# 22194421