Half of all U.S. households can now afford today’s median home value of $200,000 according to figures released by the National Association of Homebuilders. This is great news for the economy and for a hopeful recovery one of the worst housing slumps on record.
Signs of a housing recovery are everywhere, from mortgage rates at their lowest point ever to the upswing in existing home sales and even an 11 percent increase in housing permits for the month of February. This translates into a 2009 spring market that is poised to produce positive sales numbers and may even mark an end to slipping home values.
“With affordability up dramatically, reports from our builders in the field indicate that foot traffic in new homes is on the rise and consumer interest is increasing with each passing day. These are encouraging signs that the housing market may be finally reaching a bottom,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla.
Data from the Census Bureau comparing February 2007 to February 2009 shows that home buyers today can typically purchase a home for $20,000 less and save nearly $500 a month on a mortgage. The data also shows that 55.4 million Americans can now afford to own a home, that is a huge increase from 38.4 million just two years ago.
“That’s an increase of 17 million households from conditions just two years ago and the best housing affordability number we have seen in years,” said Robson. “We are now seeing the first signs that buyers are returning to the marketplace.”
The $8,000 homebuyer tax credit has done its job by sparking an interest in home buying. During February and March nearly 1.5 million people looked deeper into the homebuyer tax credit by visiting the National Association of Realtors consumer website at www.federalhousingtaxcredit.com.
“With home values in many markets at the lowest level since 2003, an $8,000 tax credit available to first-time home buyers, fixed-rate mortgages under 5 percent, and an outstanding selection of homes to choose from, buyers are starting to recognize that this has the makings for a one-time opportunity to break into the market,” said Robson.
Is now the right time for you to purchase a home? The first thing you should do before finding your dream home is to talk to a finance and mortgage professional first. This will allow you to determine how much you can afford and more importantly save you time when looking for a home.
You can get the latest on mortgage rates by visiting Future Planning Financial at www.fpf-direct.com.
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