Home affordability moved higher last quarter, boosted by the lowest mortgage rates in history, a rise in median income, and slow-to-recover home prices throughout the country.
According to the National Association of Home Builders, the quarterly Home Opportunity Index read 75.9 in 2011′s fourth quarter. More than 3 in 4 homes sold between October-December 2011, in other words, were affordable to households earning the national median income of $64,200.
Never in recorded history have U.S. homes been as affordable on a national level. Even on a regional and local level, affordability soared.
Affordability was highest in the Midwest; 7 of the 10 most affordable markets nationwide were in the nation’s heartland.
The Top 5 most affordable U.S. cities in Q4 2011 were:
These are each considered “small markets”. The most affordable “major market” was the Youngstown, Ohio area, where 95.1% of homes sold were affordable to households earning the area’s local median income.
Not surprisingly, America’s “least affordable cities” were regionally-concentrated, too, with 7 of the 10 least affordable markets located in either California or Texas.
San Francisco (#3), Santa Ana (#4), and Los Angeles (#5) led for the Golden State but, for the 15th consecutive quarter, the New York metropolitan area took “Least Affordable Market” honors.
Just 29 percent of homes in and around New York City were affordable to households earning the area’s median income last quarter. It’s a large jump from the quarter prior during which 23 percent of homes were affordable.
The rankings for all 225 metro areas are available for download on the NAHB website.
All the home owners Must act NOW. THis may take a way American Dream through entire country. All the Home owners Must write to their repsenative and portest this porposal. If they would not hear from Home owners this might take in effect. Please ACT NOW!!!
After a half-decade of tightening mortgage guidelines, banks are starting to “loosen up”.
The Federal Reserve conducts a quarterly survey of its member banks and, last quarter, not a single responding bank reported having tightened its mortgage guidelines for prime borrowers.
A “prime borrower” is defined as one with a well-documented credit history, high credit scores, and a low debt-to-income ratio.
53 banks responded to the Fed’s survey and none said that mortgage guidelines “tightened considerably” or “tightened somewhat” between September and December 2011; 50 said that guidelines remained “basicaly unchanged”; 3 said that guidelines “eased somewhat”.
Mortgage applicants sometimes remark that the mortgage approval process can be challenging. Last quarter’s Fed survey hints that looser standards are coming.
Not since before the recession have banks lowered mortgage approval standards like this and it bodes well for this year’s Houston housing market. Real estate agents report that 1 in 3 home sale contracts fail with “declined mortgage applications” as a leading cause.
Looser mortgage lending standards should mean more home loan approvals for buyers, and fewer contract cancellations. This can spur the housing market forward.
Make note, though. “Looser standards” should not be confused with “irresponsible standards”. It remains more difficult to meet bank standards as compared to 5 years. Today’s underwriters are more conservative with respect to household income, overall assets and credit scores.
Even as compared to one year ago:
For buyers and refinancing households gaining approval, though, the reward is the lowest mortgage rates in a lifetime. Mortgage rates in Texas continue to fall, helping home affordability reach new highs.
If you’re in the market to buy a new home or refinance one, your timing is excellent.
According to the Census Bureau, more than 3.2 million U.S. workers spend over 3 hours commuting to and from work each day.
Commutes exceeding 90 minutes in each direction are known as “extreme commutes” in Census Bureau parlance. As compared to typical commute times nationwide, they’re aptly named.
The national, average commute time is just 25.1 minutes.
For home buyers in any U.S. city, make sure to make commute times a consideration before placing an offer on a property. The length of your daily commute will make an impact on your life.
Studies shows that shorter commutes are linked to higher levels of life satisfaction. Long commutes are linked to low levels of life satisfaction.
As ranked by the Census Bureau, here are the 10 cities with the longest average commute times, where commuting is defined as the total time to arrive at work, inclusive of all modes of transportation (i.e. automobile, train, subway, foot, or other) :
Poughkeepsie / Newburgh / Middletown, NY: 32.2 minutes
By contrast, the shortest commute belongs to residents of Great Falls, Montana. The average commute for the city’s 58,000 residents is 14.2 minutes.
A long commute to work should not deter you from moving to a particular home or neighborhood, but your time-en-route should be a consideration. Before making an offer on a home , therefore, practice the rush hour commute from your potential new neighborhood in the morning, and back to it again that evening.
Then, imagine making the commute every day.
Here are some essential tips for sellers and aspiring home buyers. Make sure you also lean into your trusted Real Estate professional for additonal insight and guidance.
Smart Strategies for sellers
Putting a home on the market can be stressful and some owners have a hard time making objective decissions when it matter most.
Price it Right !!!
Your listing agent will perform a current market analysis. look closely at the comparable sales of home in your neighborhood that have closed in the last 90 days and take the number of available listing into account when agreeing to an asking price.
Keep in mind:
Take Advantage of your market debut
Pricing your home competitively from the get-go increases the odds of quick sale.
Most buyers screen avilable homes on the internet, and new listing get 4 times more webtraffic.If your home is priced too high when it hits the market, you run the risk that active , qualified buyers will scroll right past it.
New listings are called "hot" for reason buyers get excited about them. Showings are likely to cool off noticeably after the first 30 days on the market.
When weighing an offer, make sure to consider the potential costs of holding on to your property longer than you want or need ( including the mortgage, property taxes, insurance, maintenance, etc.).
( recent university research has found that home owners consistently overestimate the market value of their homes by 5 to 10 percent)
Sweet the Deal
Sellers who agree to pay the buyer's closing cost can make it easier for first timers to obtain financing. Offering to throw in appliances , upgrade all allowances or oher perks could also swing a buyer's decision your direction.
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