Long Way To Go, But The Market Is Looking Good!

Long Way To Go, But The Market Is Looking Good!

It's been a strange recovery and it isn't over yet.  Here are a few nationwide factoids that illustrate we are in a good place right now. 

 - For the first time in a long while, the housing cost-to-income ratio is at 23%, the lowest in 30 years!   (California specific figures however, would be a bit higher)

 - 14% of renters moving out these days across the nation are doing so because they are buying property.  This number has been slowly rising since it bottomed out at roughly 11% in 2011.  The job market is making a comeback which in turn is producing qualified buyers that have only been able to rent until now.

 - The National average monthly payroll employment growth amount is currently at $165k, whereas April 2012 was $112k.  There have been a few peaks in this number between then and now, but has been looking up ever since a low $69k in June 2012.

 - Mortgage rates are still considerably low, but slowly increasing, currently at 3.4% on a 30-Year fixed, it is projected to come up to 3.6% by the end of this year and possibly up to 5.4% in the next 4 years. 

Long Way To Go, But The Market Is Looking Good!

All of this means we're headed in the right direction.  Even if mortgage rates might be going up and demand is increasing with supply being low, it's certainly nothing to really complain about.  I know I'd rather have this "problem" than waiting for the phone to ring on a new listing.  Fact is, there are pros and cons with any market situation and not everyone will be happy with the current state.  However, I feel as a whole, we are on our way to a thriving real estate market that we just haven't seen in a very long time. 

Long Way To Go, But The Market Is Looking Good!