If you’re in the market to buy a home, low interest rates have made mortgages much more affordable. But a new report says your choice of homes may be limited: Lack of market activity because of COVID-19 has caused housing inventory to drop to a historically low level.
There are still affordable homes out there, though, and Realtor.com’s May 2020 Affordability Report says two metropolitan cities — Des Moines, Iowa, and Baton Rouge, Louisiana — offer affordability and sufficient housing supply.
Let’s look at the top five markets for affordable homes, according to the report:
Top 5 Affordable U.S. Metros
| Metro | Active Listings | Median Listing Price (April) | Affordability Score |
|---|---|---|---|
| Des Moines-West Des Moines, Iowa | 3,026 | $269,800 | 1.03 |
| Baton Rouge, La | 3,782 | $248,800 | 1.00 |
| Atlanta-Sandy Springs-Roswell, Ga. | 37,351 | $325,050 | 0.89 |
| Virginia Beach-Norfolk-Newport News, Va-N.C. | 7,252 | $316,050 | 0.89 |
| Jacksonville, Fla | 8,348 | $311,545 | 0.83 |
To come up with its analysis, the report authors looked both at housing availability and how the housing inventory in each city compares to several different income brackets.
Money expert Clark Howard says as long as you know that your employment is stable, “conditions are fine for you to proceed with closing on that sale and moving into that property.”
“You’re locking in essentially low cost for housing because of getting that low rate and you’re going to need a place to live.”
You can see Realtor.com’s full report here.
