The big picture on the current local market is that it is a good time to sell, a historically phenomenal time to buy and a great time to invest in rental property. This week we will discuss each of these market segments in a 3 part series. Today is part 2 of 3: It’s a Historically Phenomenal Time to BUY!
One of the housing indicators widely used is the Housing Affordability Index which reports the ability of a family earning the median income to purchase a median-priced home. For example an index of 120 means the median household income was 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability the average affordability index locally in the past 12 months was 169 with the highest number in December at 183. Let me put this into perspective with the following chart from Keller Williams Gary Keller:
| 1989 | 2011 | |
| Bread | $0.67 | $2.78 |
| Gas (gallon) | $0.97 | $2.84 |
| New Car | $15,000 | $30,000 |
| Existing Home | $94,000 | $166,100 |
| Mortgage | 10% | 4.45% |
| Monthly Payment | $825 | $837 |
While the average price of house has increased by $72,100 the monthly payment for that increase is only several dollars more per month. Current mortgage rates are historically low and real estate professionals and economist know they will eventually begin to rise so don’t miss your opportunity – if you need to move, move and if you don’t refinance today! It is a historically phenomenal time to BUY and in our area it will give you a cheaper payment than renting.
Not sure if you are prepared financially? Let us connect you with a reputable mortgage advisor that can give you the information you need to help you answer that question and prepare to move now or in the short future.
So call us today to start talking about the move you need to make this year!