The State of the Market: There is a Silver Lining…
If you’ve picked up a newspaper, flicked on a TV or tuned into talk radio recently, you have experienced your share of opinions and predictions about the real estate market, but here are the facts.
AFFORDABLITY IS HIGH
The Housing Affordability Index measures the ability of a typical American family to qualify for a mortgage based on the median-price for an existing single-family home. A score of 100 indicates that a typical family would have the exact amount required based on a 20% down payment and monthly payment of no more than 25 % of their household income.Currently, the index is at 135.2, which means the average American family not only can afford to purchase a home, but also will have excess money for living expenses. Another upside, highly desirable real estate such as Wilmington, Wrightsville Beach, and surrounding area’s are becoming more affordable.
SELECTION IS VAST
With more homes on the market, homebuyers can be more selective than in previous years. During the recent market boom, Limited availability and high prices resulted in many people making offers on homes due to fear of being left out of the market. However, in this buyers market, houses hunters can Afford to take their time and make a choice they are fully comfortable with.
THE UPSWING CONTINUES
Continuing the trend of increased existing home sales, 2009 is expected to produce an additional 6.6Percent increase in home sales. 2009 will be among on the strongest transaction years in history with an estimated 5.74 transactions. This New Year is also projected to boost new home sales to more than 600,000 transactions.Existing homes sales prices are also expected to increase by 3.7 percent in 2009, with new home sales increasing by 4 percent.
Source: National Association of Realtors
Posted by Nilesh Jethwa Wilmington, NC Real Estate
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