Last week’s one housing report gave us the National Association of Realtors Pending Home Sales Index, down 7.6% for January. But year over year, the NAR Index is up 12.3 %. Also, it’s now at 90.4 and a score of 100 equals the average level of contract activity for 2001, the base year, when activity was at a record high. So pending sales are still in pretty good territory.
MEANWHILE, a quarterly report from a builders group and a major bank revealed that home prices are at near record levels of affordability. In the last 3 months of 2009, a family making the median income of $64,000 a year could afford to buy 70.8% of all homes sold during that time! According to this report, a home is affordable if a family making the metro area’s median income would have to spend no more than 28% of their take-home pay for housing. Of course, there are variations in affordability around the US, but this is a great overall trend!
Buyers, however, shouldn’t expect great affordability to last forever. According to a Freddie Mac Index, in the last quarter of 2009 four out of nine regions showed home price gains! And the NAR’s monthly market forecast, out last Thursday, projected the median price of existing homes UP 2.8% for 2010 with the new home median price UP 2.0 %. In addition, no one knows what will happen to mortgage rates once the Fed stops buying mortgage bonds at the end of this month. Smart buyers shouldn’t drag their feet, especially those wanting the tax credit, which requires a signed contract by April 30.
I would love to hear from you to help you buy that new home.
call me @ 801-836-0205 or
email me @ firstname.lastname@example.org