With home values in Philadelphia at an all-time high, the idea of buying a home can seem out of reach for many—especially when a new report says you need to make more than $53,000 to afford it.
According to mortgage site HSH.com, the average median home price in Philadelphia is $232,200. Based on that number, and with the mortgage rate at 3.73 percent, you’d need to make the very precise salary of $53,421.87 a year to be able to afford a median price home.
That’s assuming that you put the recommended 20 percent down payment. If you opt for 10 percent, your salary has to be at least $61,303.
Overall, Philly’s median home price jumped 13.88 percent from quarter 1 to quarter 2, according to the report.
Now with any real estate market report, it’s worth taking these numbers with a grain of salt. That’s because while HSH.com puts the median price of a homes in Philly at $232, 200, Zillow recently put it at $187,000 based on June 2016 numbers. Meanwhile, a July report by Realtor.com said it was $235,000.
Feeling sticker shock? Relax: While Philly is officially a sellers’ market, here’s how it compares to the rest of the biggest cities in the U.S.