According to a study by visual capitalistPhoenix residents need a salary of at least $86,300 a year to buy a home. Of the 50 US metropolitan areas selected for this report, Phoenix ranked 17th.th At the highest salary you’ll ever need to buy a home in 2022.
read also: Arizona ranks second in home price growth
Home Prices Rise Across Valley
Phoenix Metro has recently become one of the hottest real estate markets in the United States. studyover the past decade, Phoenix has seen the second fastest increase in home prices compared to other metropolitan areas.
Can I buy a house if my annual income is less than $86.3K? The answer is yes.
This salary is based on median housing prices in Phoenix. Therefore, there are many homes below this number. Another major factor is where in the Valley you are buying. For example, home prices are higher in Scottsdale than in Mesa.
Another variable of affordability is when buying a home with a partner. With two incomes, he is more likely to be able to cover the monthly mortgage costs.
Finally, how much you save for your down payment can increase (or decrease) your chances of buying a home. The higher the down payment, the lower the monthly cost to pay off the loan.
When considering buying a home, compare your monthly income with all the costs of owning a home.
The total cost of owning a home depends on where you live and may include property taxes and homeowners association fees. Also, take your water and electricity bills into consideration when calculating your monthly budget limit. Another cost of owning a home is maintenance. Bought a house in need of renovation? Do you pay someone to take care of your lawn or pool, or do you do it yourself? Have you considered the cost of pest control? All these factors are reflected in the output.
The sooner you start preparing to buy a home, the better. Improve your credit score and pay off debt before buying a new home. Your credit score determines whether you qualify for a lower mortgage rate, and the size of the loan you qualify for depends on your debt-to-income ratio. Meet with your mortgage lender to estimate the affordability of your home before making the purchase decision. Buying a home can be difficult. Being financially prepared is the best way to stay one step ahead.
author: Rich La Rue is the broker of choice for HomeSmart Phoenix, the flagship brokerage business of the HomeSmart system. For more information, see: www.richlarue.com.