Housing Affordability: Never Been Better by Todd McCauley
Never before has there been a better or more affordable time than right now to buy a home. One of those reasons is undoubtedly the unprecedented rock bottom mortgage rates of 4.4 percent on a 30- fixed rate. Couple that with the median household income currently twice the income necessary to buy the current median-priced home, there is no denying this is absolutely a buyer's market.
During the height of the housing bubble, NAR's Housing Affordability Index stayed only slightly above 100, meaning that home buyers were barely meeting the requirements necessary to qualify for a home purchase. Given modest gains in the job market, slight gains in the wage rate and a holding steady unemployment rate, indications are promising for continued improvement. NAR's Housing Affordability Index rose 13.6 percentage points in January to 166.8, a new record high. And, given the current trends we could see a record high of 200 before the year is over.
There is no arguing that markets across the country vary. Take Las Vegas, one of the weakest markets in the country right now and compare it to some of the stronger markets such as New York that experience only minimal price reductions. Across the board nationally, however, affordability conditions are at record highs.
Tax incentives are over and there is somewhat of an abundance of inventory. It is possible, as some suggest that home prices may continue to drop. That doesn't seem to be stopping investors, all-cash buyers and those seeking to take advantage of these amazing low interest rates. Even if the prices do drop a bit more, interest rates like we are seeing now are sure to get buyers out shopping.
There is no argument that home sales have slowed since the expiration of the tax credit, yet buyers are still expected to answer to this increased affordability. Existing home sales rose in the month of August. According to NAR, pending home sales have continued to increase in spite of expired stimulus.
For those buyers sitting on the sidelines waiting for the prices to reach the bottom, the time to step up and make that leap of faith is now. All indications tell us that the time to buy is now. September is usually a dreary month in the stock market, yet this year we experienced the best September in 71 years. This brings hope to the consumer and hopefully more buyers to the market.
According to the Bureau of Labor Statistics, the number of the unemployed persons, was essentially un-changed, at 14.8 million in September. The unemployment rate held steady at 9.6 percent. These numbers don't seem to coincide with any kind of economic good fortune, however remember where we were at during the height of the recession.
Only time will tell but as we already know, fall and winter typically are less active seasons in real estate. I suspect this season will have more to show for itself Buyers have several things going for them; plenty of inventory, incredible interest rates and an economy that at least appears to be maintaining, making this time ripe for the buyers' picking.
The Help Program will help you list your homeBoise Home Locator Expert
Article Source: ArticleSnatch Free Article Directory
Never before has there been a better or more affordable time than right now to buy a home. One of those reasons is undoubtedly the unprecedented rock bottom mortgage rates of 4.4 percent on a 30- fixed rate. Couple that with the median household income currently twice the income necessary to buy the current median-priced home, there is no denying this is absolutely a buyer's market.
During the height of the housing bubble, NAR's Housing Affordability Index stayed only slightly above 100, meaning that home buyers were barely meeting the requirements necessary to qualify for a home purchase. Given modest gains in the job market, slight gains in the wage rate and a holding steady unemployment rate, indications are promising for continued improvement. NAR's Housing Affordability Index rose 13.6 percentage points in January to 166.8, a new record high. And, given the current trends we could see a record high of 200 before the year is over.
There is no arguing that markets across the country vary. Take Las Vegas, one of the weakest markets in the country right now and compare it to some of the stronger markets such as New York that experience only minimal price reductions. Across the board nationally, however, affordability conditions are at record highs.
Tax incentives are over and there is somewhat of an abundance of inventory. It is possible, as some suggest that home prices may continue to drop. That doesn't seem to be stopping investors, all-cash buyers and those seeking to take advantage of these amazing low interest rates. Even if the prices do drop a bit more, interest rates like we are seeing now are sure to get buyers out shopping.
There is no argument that home sales have slowed since the expiration of the tax credit, yet buyers are still expected to answer to this increased affordability. Existing home sales rose in the month of August. According to NAR, pending home sales have continued to increase in spite of expired stimulus.
For those buyers sitting on the sidelines waiting for the prices to reach the bottom, the time to step up and make that leap of faith is now. All indications tell us that the time to buy is now. September is usually a dreary month in the stock market, yet this year we experienced the best September in 71 years. This brings hope to the consumer and hopefully more buyers to the market.
According to the Bureau of Labor Statistics, the number of the unemployed persons, was essentially un-changed, at 14.8 million in September. The unemployment rate held steady at 9.6 percent. These numbers don't seem to coincide with any kind of economic good fortune, however remember where we were at during the height of the recession.
Only time will tell but as we already know, fall and winter typically are less active seasons in real estate. I suspect this season will have more to show for itself Buyers have several things going for them; plenty of inventory, incredible interest rates and an economy that at least appears to be maintaining, making this time ripe for the buyers' picking.
The Help Program will help you list your homeBoise Home Locator Expert
Article Source: ArticleSnatch Free Article Directory