Part of what we do at Steere Home Builders, is to watch the activity around the nation concerning housing in general. Interest rates are at the lowest in history. One local bank is advertising a mouth-watering 3.75% 30-year fixed mortgage rate.
Earlier this spring, billionaire Warren Buffett predicted that by 2011 “residential housing problems should largely be behind us”.
And today, as released by the US Commerce Department, nationwide housing starts edged up 0.3% in September, due entirely to a 4.4% gain in single-family housing.
As the nation continues to recover from some difficult times, I believe that Americans have learned a bit about housing.
I would take a venture to predict that by the end of 2011, the current buzz phrase “affordable housing” will be the norm.
What exactly is “affordable housing”? Basically, it is housing that can be afforded by those that have a median income. Affordable housing would typically not exceed 30% of gross income. In the Cedar Vally, the median income, according to Fannie Mae is $60,500.00. 30% of this is $18,150.00 or $1512.50 a month.
Obviously, when getting a loan for a new home, there are many many many (can I add one more many here?) factors involved. We are not bankers and we recommend you consult with your bank before deciding how much to spend on building a new home. But, on average $1512.50 would be the payment for a home between $200,000 and $230,000.
At Steere Home Builders, we know affordable housing. In 2009 and 2010, the average cost of building a home with us was $175,545 (actually final costs used, lot not typically included).
We’re continuing our efforts to build affordable housing for Iowans. Stop by our design center today to discuss how you, too, can afford to build a new home in the Cedar Valley.
