The Housing Affordability Index has reached a record high meaning the average buyer has the strongest purchasing power today than ever before. The Housing Affordability Index first began record keeping in 1970 and this is the first time the index has gone over 200. The article on NAR's website states, "NAR’s Housing Affordability Index rose to a record high 206.1 in January, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power." This is phenomenal news!
The article on NAR's website goes on to say, "An index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent downpayment and 25 percent of gross income devoted to mortgage principal and interest payments." At 206.1 the index shows the average household has more than double the purchasing power they need.
There is more great news in Bucks County as well. Sales are picking up, inventory is decreasing & mortgage rates remain at historic lows. Through February Single Family Home Sales are up 10.41% and Bucks County Condo Sales are up 18.33% from the year before. This all culminates in a fantastic opportunity to become a homeowner & is finally giving those who want to move up a great opportunity as condo sales are up & purchasing power is at an all time high.
If you are thinking about buying, or selling in Bucks County give me a call to see how I can help you accomplish your goals and help you find your perfect home.
If you are still on the fence, but want to learn more about the Homebuying Process checkout the Buyer's Section on my website
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Sellers: Fill out the What's The Property Worth form below to see What Homes Are Selling For In Your Neighborhood. You can choose how often you'd like to be updated on recent sales & which homes are currently on the market.