Cornelius
Real Estate 2009 Part I
October 9, 2009 by Dean Hagey · Leave a Comment
The State of the Market: There is a Silver Lining
Affordability 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 indicated that a typical family would have the exact amount required based on a 20 percent down payment and monthly payments of no more than 25 percent 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 markets such as California, Arizona and Florida are becoming more affordable.
Selection Is Vast
With more homes on the market, home buyers 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, house 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 6.6 percent increase of home sales. 2009 will be among one of the strongest transaction years in history with an estimated 5.74 million transactions. This year is also projected to boost new home sales to more than 600,000 transactions.
International buyers infuse the U.S. Market.
Some real estate agents are reporting that 25 percent of their transactions are coming from foreign buyers, up from previous estimates of 10 percent. Many of these wealthy international buyers are looking in coastal markets like New York City, San Diego, and Miami. Foreign buyers not only infuse money into our economy, they strengthen and stabilize home prices. “With these prices, you can’t say no!”
Please give me a call at 704-968-1965 for a free market analysis on your home. Now is the time to buy!
