The median price of an existing home increased to a record $252,800 in May. Ever-rising prices have some worried about a bubble, but CBS News says not to worry.
Various housing market forecasts anticipate that real estate prices will grow at a 1 percent to 4 percent annual rate due to strong labor markets, low mortgage rates, and tight inventory. In other words, prices won’t plummet all of a sudden.
The site also offers tips for buyers who don’t want to repeat what happened in 2008. During the housing search, buyers should conduct their own research, check local home price-to-income ratios, and calculate your housing expenses.
As a general guideline, your monthly payment -- including loan principal, interest, real estate taxes and homeowner's insurance -- shouldn't exceed 28 percent of your gross monthly income.
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