With the housing market turning around homes are becoming less affordable, making it difficult for anyone buying a home to get the kind of house for the kind of money they would have spent even just two years ago. The housing market is making a huge comeback in most areas of the country. No longer can you buy triple the house for half the price; prices are rising considerably and many once-affordable communities now have home buyers opting for new locations because they’re just not affordable anymore.
Last year alone the cost of buying a home and the cost of living in Baltimore was a staggering 16 percent less than it is today. Buying a home in Baltimore is significantly more expensive. For example, the median price of buying a new home in Baltimore last year was approximately $206k. Today it is approximately $262k.
Los Angeles, California
Not necessarily known for being the most affordable place to live in general, the price of buying a home in Los Angeles has spiked significantly since last year; in fact, it’s spiked 17 percent. In May 2012 buyers were looking at an average home price of $330k. Today, the average cost of a home in Los Angeles has jumped to more than $470k. The good news, however, is that the price doesn’t look to continue to rise in LA, which means you might be able to afford a home during this plateau – even though you’ll bitterly wish you’d hit the market a year and a half ago.
If you thought home prices in Los Angeles were up, you might want to sit down when you read the increasing price of homes in Detroit. Since last July the average cost of living and buying a home in Detroit has risen more than 28 percent; and the prices just keep rising.