Here is some information that has been put together to give a good overview of where the national market is at and where it is heading. Always keep in mind that real estate is local. National statistics may or may not be reflective of your real estate market. I appreciate my company, Keller Williams, giving easy access to the research they do on our behalf.
Home Sales
Home Sales are up 1.4% from last year despite disruptions in the credit markets.
Affordability
Increase in home sales is mainly due to improving affordability conditions. Affordability index is up 17%.
We've seen 7 straight months of improving affordability this year. The median mortgage payment now consumes 18.5% of family income in comparison to 23.5% of income 2 years ago.
Median Home Price
Home prices are down 9% from a year ago. Distressed properties represent 35-40% of transactions.
Mortgage Rates
Mortgage rates remain low at around 6% and are expected to rise to 6.5% by the end of 2008 and hold at that level for most of 2009.
Inventory
Inventory remains high at 9.9 months of supply. We have seen 3 months of consecutive declines in inventory since the peak in June at 11 months.
Research findings: Housing bottom might be near - Market expected to stabilize in 2009
Home sales expected to increase
Home price declines expected to end
Interest rates should remain stable at around 6 or 7 percent
Source: Survey of 840 economists by the Keller Center for Real Estate Research at Baylor University
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