According to recent data from the National Association of Realtors (NAR), affordability conditions are improving, as housing markets across the country are beginning to make a comeback.
This trend is thought to be bolstered by lower existing home prices as well as record low interest rates. According to a recent market trend publication distributed by the NAR, median prices for existing single-family homes lowered in 118 metro areas and as a result, reflected greater homes sales activity at lower price points.
Sales of lower-priced homes showed a strong increase compared to one year ago, providing a good market environment for affordable housing. In the fourth quarter of 2011, the median existing single-family home price was $163,500 - down 4.2 percent from $170,600 in Q4 2010. Basically, the data indicated that home buyers are getting more home for their money than they would have a year ago.
Could this be the spark that ignites a full-blown market comeback? Perhaps. As affordability continues to increase, so may purchase activity. And if a home is purchased at an affordable price, it stands to reason that when it comes time to sell, homeowners won't feel as pressured to sell at a higher price point to pay off their debt. Despite this possibility, market analysts aren't quick to begin celebrating. Most experts agree that there is still room for improvement and a true market resurgence could take some time.