The housing market in Texas is now marked as the most affordable in the country with record low interest rates, giving Texans home buyers even more affordability in the home buying market.
According to the Texas A&M University Real Estate Center, a current Texas home buyer making around $37,000 a year could likely qualify for a $150,000 home, while twenty years ago a home buyer would have needed to have at least around a $49,000 annual income to qualify for a house of the same amount. This is because while a present day 30-year, 80 percent loan with a 4 percent interest rate would be appropriate for a current home buyer, in 1991 a home buyer could qualify for the same loan but with an average interest rate of 9.64 percent.
However, housing experts are saying that other states are honing in on the affordability of the Texas housing market and are striving to narrow the gap. According to James Gaines, a research economist at the Real Estate Center of Texas A&M, the national median price of homes has declined 25 percent in the last six years. Unfortunately for the Lone Star State, the statewide median home prices have increased about 4 percent during that time. While the Texas housing market is in the lead now, Gaines suspects that we may see a decline in affordability in some areas.
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