Thursday, April 30, 2009
Thursday, April 23, 2009
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Friday, April 17, 2009
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Wednesday, April 15, 2009
What's in your backyard?
The Newest Addition to James Hill! Look outside and you will see a nature trail and green open park ready for your enjoyment! Looking forward to seeing you all enjoying nature here at James Hill!
EXTRA EXTRA! Read All About It!
We have the best housing affordability in at least 38 years, and the worst economy in 51 years. Hmm....The monthly cost of homeownership has fallen 43% from the peak in this cycle, with more than half of that due to the decline in price, and the remainder due to the decline in mortgage rates and increase in incomes. The median-income household, which earns $52,800 per year, only needs 25% of their income to buy the median-priced single-family home of $164,600. In July 2006, that ratio was 44%.
Those of us who are in the housing business know that the monthly payment is far more important than the price for entry-level buyers. Entry-level buyers compare the cost of homeownership to the cost of renting and have no idea what a Case-Shiller index means. Once the word gets out that homeownership is less expensive than renting, which is now also true in 54 of the 88 markets where we track this information, we expect buying activity to increase substantially (even in a horrible economy).
With the media so focused on price, we thought it would be appropriate to share the change in payment. We calculate the housing-cost-to-income ratio for major metro areas across the country assuming a 20% down payment, a fixed-rate conforming mortgage, and full amortization of the down payment over 7 years (the typical length of homeownership). In the Oakland, CA MSA, housing costs in this cycle have plummeted from 84% of income to 28%, a decline in monthly payment of 67%. The California and Southwest markets have shown the greatest correction, while the Texas markets, with consistently low housing-cost-to-income ratios, have shown less improvement.
Thursday, April 9, 2009
Home Affordability Hits Record
Home affordability hits record
If you can afford to do so, now may be time to buy that house. Not only are prices significantly down from their housing-boom peaks, but home affordability is at an all-time high, according to trade group, the National Association of Realtors.
The group has recently released its Housing Affordability Index, which shows that in February, the index increased 0.9 percentage points from January to 173.5, a record high since NAR began tracking the index in 1970. February's level is 36.3 percentage points than that of February 2008, according to NAR.
The index, which measures housing affordability, examines the relationship between home prices, mortgage interest rates and family income. February data shows that a median-income family earning $59,700 a year can now afford a $285,600 home by putting down a 20 percent down payment (assuming 25 percent of their gross income is put toward mortgage principal and interest), NAR says. The home such a family could afford is now much greater than the median existing single-family home price, which was $164,600 in February.
Last year, the same family could only afford a home priced at $265,600, NAR says.
"If you have a good job and long-term plans, it's unlikely that you'll find a much better time to buy a home. This is especially true for first-time buyers who can qualify for an $8,000 tax credit this year, have a great selection of homes to choose from, and are in a favorable negotiating position," says NAR President Charles McMillan.
http://www.cyberhomes.com/content/blog/09-04-09/Home_affordability_hits_record.aspx
If you can afford to do so, now may be time to buy that house. Not only are prices significantly down from their housing-boom peaks, but home affordability is at an all-time high, according to trade group, the National Association of Realtors.
The group has recently released its Housing Affordability Index, which shows that in February, the index increased 0.9 percentage points from January to 173.5, a record high since NAR began tracking the index in 1970. February's level is 36.3 percentage points than that of February 2008, according to NAR.
The index, which measures housing affordability, examines the relationship between home prices, mortgage interest rates and family income. February data shows that a median-income family earning $59,700 a year can now afford a $285,600 home by putting down a 20 percent down payment (assuming 25 percent of their gross income is put toward mortgage principal and interest), NAR says. The home such a family could afford is now much greater than the median existing single-family home price, which was $164,600 in February.
Last year, the same family could only afford a home priced at $265,600, NAR says.
"If you have a good job and long-term plans, it's unlikely that you'll find a much better time to buy a home. This is especially true for first-time buyers who can qualify for an $8,000 tax credit this year, have a great selection of homes to choose from, and are in a favorable negotiating position," says NAR President Charles McMillan.
http://www.cyberhomes.com/content/blog/09-04-09/Home_affordability_hits_record.aspx
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