Bethesda, MD – Is Residential Housing Ready to Awaken? This article presents many layers and perspectives on the impending rebound of housing with many variables weighing on the recovery nationally and locally … from the employment outlook to next year’s election outcome, possible cuts in Federal and defense budgets, stable vs rising interest rates and how the banks manage the release of pent-up distressed properties.
We are fortunate that the Bethesda real estate market is among the most stable housing markets in the country. See my monthly Bethesda Market Trends reports which are the most detailed market statistics available by zip code and town: Bethesda and Chevy Chase real estate plus Potomac, Rockville and Silver Spring.
PRICE OF A HOME VERSUS THE COST
This chart is an eye-opener for putting affordability in perspective. Right now housing affordability has improved dramatically with mortgage payments now accounting for just 13 percent of a monthly medium family income which is the lowest percentage since 1971. The monthly mortgage payment for a medium priced single‐family home in this country has declined by 40 percent in the last 5 years. Right now, housing affordability on a national level has improved dramatically with mortgage payments now accounting for just 13 percent of a monthly medium family income which is the lowest percentage since 1971. In the Bethesda, MD, DC and Northern VA area, housing payment-to-income per capita is 35% to 42% lower than the 30-year average!
This affordability is driven primarily by the lowest interest rates in history.