Home Affordability Rankings For 225 Metropolitan Statistical Areas

On August 27, 2010, in Real Estate Information, by admin | View Comments

Home Affordability - Top and Bottom 5 markets 2010 Q2

With home prices holding firm and mortgage rates still dropping, home affordability is reaching new heights.

According to the quarterly Home Opportunity Index as published by the National Association of Home Builders, more than 72 percent of all new and existing homes sold between April-June 2010 were affordable to families earning the national median income.

It’s a slightly higher reading as compared to last quarter, and the second highest reading in the survey’s history.

As with all aspects of real estate, however, home affordability varies by locale.

For example, 97.2% of homes sold in Syracuse were affordable for families making the area’s median income, earning the New York city its first “Most Affordable Major City” designation.  Indianapolis was the first quarter winner.

On the opposite end of the spectrum, the “Least Affordable Major City” title went to the New York-White Plains, NY-Wayne, NJ area for the 9th consecutive quarter.  Just 19.9% of homes are affordable to families earning the local median income, down 1 percent from last quarter.

The rankings for all 225 metro areas are viewable on the NAHB website but regardless of where you live, buying a home is as affordable as it’s ever been in history. Furthermore, because home values are in recovery and mortgage rates may rise, the market is ripe for home buyers in Tucson. Tucson ranks #153 in the Nation.

All things equal, buying a home may never be this inexpensive again. If you were planning to purchase later this year, you may want to move up your time frame.

Get ready for Bernanke-speak!

On August 26, 2010, in Market News, by Todd Abelson | View Comments

Tomorrow morning, Friday 8/27, at 10 am ET, Fed Chairman Ben Bernanke will be speaking from Jackson Hole, Wyoming at the Kansas City Fed’s Annual Symposium.

This may be one of the most important speeches Mr. Bernanke has ever given because the Fed has been criticized for lacking leadership and vision during these very tough times. The markets will be looking and hoping for a CLEAR, UNIFIED plan to help the economy get back on it’s feet.

The contents of the speech are GUARANTEED to move the markets, so if you like what you see rate-wise I suggest you LOCK IN now. Gamblers take note!

Call Todd Abelson & Tyler Ford at Sunstreet Mortgage in Tucson, AZ for all your mortgage needs (520) 331-LEND

Join the Tucson Mortgage Team on our Facebook Fan Page

On August 26, 2010, in Tyler Ford & Todd Abelson, by admin | View Comments

We are proud to announce the launch of our Tucson Mortgage Team Facebook Fan Page. Come join our community and become a friend of our Facebook Fan Page.

Comment on our wall and let us know how we can serve you better and what type real estate and mortgage information you are interested in.

Thanks in advance for connecting with us!

New Home Sales Drop In July — Just Like Existing Home Sales

On August 26, 2010, in Market News, Real Estate Information, by admin | View Comments

New Home Supply July 2009 - July 2010One day after the National Association of Realtors released the softest Existing Home Sales report since 1995, the U.S. Census Bureau released a similarly-weak New Home Sales report.

Americans bought just 276,000 newly-built homes in July. That marks the fewest units sold since the government started keeping records in 1963.

In addition, although new home inventory actually dropped 2,000 units in July, the slowing sales pace still managed to push the national supply higher by 1.1 months.  At July’s rate of sales, the nation’s new home inventory would be exhausted in just about 9 months.

None of this news should surprise you, though. It’s all been foreshadowed for weeks.

First, Single-Family Housing Starts have dropped in every month since April.  A “housing start” is a when a home starts construction and, because fewer homes are under construction, we should expect fewer homes to be sold.

Second, Building Permits are down.  The number of new permits peaked in March and have fallen 23 percent since.

And, lastly, home builder confidence ranks at its lowest levels since early-2009. A contributing factor in that pessimism is dwindling buyer foot traffic.

Regardless, there’s two sides to the story. Although the New Home Sales data looks bad for builders, it can be terrific  for you. This is because new homes are more likely to be discounted when the sales cycle favors buyers.

Coupled with ultra-low mortgage rates, the cost of buying a newly-built home in Tucson may have just become cheaper.

Existing Home Sales Plummet In July; Home Buyers Gain Leverage

On August 25, 2010, in Market News, by admin | View Comments

Existing Home Sales July 2009 - July 2010The number of home resales plunged by 1.4 million units in July, according to the National Association of Realtors®’ Existing Home Sales report.

It’s a drop of 27 percent from June; single-family home resales are at the report’s lowest levels since May 1999.

Furthermore, because of the sharp drop in sales volume, home inventories are spiking.

Homes for sale nationwide fell just short of 4 million units in July and, at the current sales paces, it would take 12.5 months for the existing inventory to be absorbed.

Home supply was just 8.9 months in June.

For home sellers in Tucson , the Existing Home Sales report is a bit of bad news.  Fewer sales and larger inventories put negotiation leverage in the hands of the buyers which, in turn, creates downward pressure on home prices.  It may also increase time-on-market.

For home buyers, however, the data is decidedly welcome. After a stimulus-driven spring buying season that favored sellers, the summer and early-fall market seem to favor buyers. More choices and more leverage is a positive.

It helps that home affordability is up, too.

Although there’s reports that home values are rising, their modest gains are more than countered by the ongoing rally in mortgage rates. Freddie Mac says that 30-year fixed rate mortgage rates are at their lowest levels in history and, at today’s rates, every one-eighth drop in mortgage rates roughly offsets a 1.5% increase to home price.

Mortgage rates are down 0.75 percent since mid-April.

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