A Silver Lining? Housing Affordability Peaks

May 4, 2009

Heery Brothers, Founding Partners

Heery Brothers, Founding Partners

Submitted by Heery Brothers, Founding Partners, REALTORS® with Atlanta Fine Homes Sotheby\’s International Realty. 

What happens when interest rates and house prices fall? Housing becomes affordable.  Simple enough, but what happens when housing affordability increases on average across the United States by say, 50% of 60%?

Heery Brothers felt housing affordability might peak in January or February.  New data released this week from the National Association of Realtors (NAR) implies we were correct if prices were stable, but alas they are not. The National Association of Realtors seems to feel we will hit a pricing low point in the first quarter of 2010.  It is this in tandem with possible low interest rates that causes a NAR projection of the housing affordability index to hit 173 in first quarter 2010.  These are close to the levels seen in January and February of this year.

National Association of Realtors Housing Affordability Index

National Association of Realtors Housing Affordability Index

If you want to buy a house in the next year, shop now.  Don’t wait. 

National trends are not always reflected on local markets and suitable housing inventory is hit or miss.  People are not always finding the house they want. 

NAR breaks the country into four regions. The South is second highest on affordability.  The Midwest index hitting 210.9 recently is more indicative of shaky investment fundamentals and scary trends, – not a problem Atlanta has. 

Buy now and pay less.  More information is available at http://www.realtor.org/research.


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