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What to know about the current housing market

The mortgage on a median-priced home in America is up 13 percent from the first part of 2017. This could make it more challenging for Delaware homebuyers this spring season. When a buyer takes taxes and other costs into account, a total mortgage payment can easily exceed 30 percent of a person's income. Ideally, housing should constitute no more than 30 percent of a person's take-home pay.

A combination of increased interest rates and a lack of inventory have resulted in the higher home prices. The interest rate for a 30-year fixed-rate loan was 4.46 percent as of March 16, the highest since January 2014. It's important to note that home prices haven't appreciated equally throughout the country. In cities such as San Francisco and Seattle, a mortgage now costs $378 and $449 more a month than a year ago.

Therefore, buyers are going to have to consider whether they want to save money or pay more to get what they need. Rather than strictly sticking to the 30 percent housing-to-income ratio, buyers may benefit most from focusing on getting what they can afford.

Those who are looking into buying residential property may want to consider the whole transaction before putting in an offer. For instance, it's important to consider the interest rate on a mortgage, down payment required and what the property taxes will be. An attorney and real estate agent could help a buyer find a home as well as understand what he or she is agreeing to before the transaction becomes official. Ultimately, this could save the buyer a lot of money.

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