More Record Mortgage Rates Add to Housing Recovery – Yardley, Newtown, Bucks County
Residents of Yardley, Newtown and Bucks County, the news keeps getting better! Once again mortgage rates have dropped to an all-time low. The average 30-year fixed rate mortgage dropped last week from 3.62% from 3.66%. This has followed a downward trend for the last eleven weeks! The 15-year fixed rate fell as well to 2.89%, down from 2.94%.
These falling mortgage rates provide another boost to housing markets across the nation, which a recent Inman News article states is finally on the rise. The article states that the housing slump has definitely bottomed out and is on the upturn, bringing increased demand for new construction, loosening of restrictions by lending institutions, and rising home prices. It seems that the strong economic indicators of 2012 should continue.
Contact me if you are interested in learning how the changing housing market in Bucks County will affect you as a buyer or seller of real estate. I’m always glad to assist you.
Continue Reading > Add a Comment |Home Affordability in Yardley, Newtown and Bucks County.
If you happen to be considering buying a home in the Yardley, Newtown area in Bucks County, based on the home affordability index, now may be a great time to buy.
Last quarter, with home prices still relatively low and mortgage rates making new, all-time lows almost weekly, the cost of home ownership was extraordinarily low in Pennsylvania and most U.S. markets.
According to the National Association of Home Builders’ quarterly Home Opportunity Index, 72.5 percent of all new and existing homes sold between June-September 2010 were affordable to families earning the national median income. This ties the all-time high for home affordability, set in the first quarter of 2009.
The data also underscores that, when compared to historical norms, it’s a fantastic time to be a Lower Makefield Township home buyer.
Prior to 2009, the Home Opportunity Index rarely topped 65. The index has remained above 70 ever since.
All real estate is local, though, and on a city-by-city basis, home affordability varied last quarter.
For example, 96% of homes sold in Kokomo, IN are affordable for families earning the area’s median income. This handily beat the average figure and led the nation. Looking at major cities, Indianapolis led the pack.
93% of homes in Indianapolis are affordable to families earning the area’s median income. This ranks #9 nationwide.
On the opposite end of the affordability scale is the New York-White Plains, NY-Wayne, NJ region. For the 10th consecutive quarter, the New York Metro region ranks last in U.S. home affordability. Just 23% of homes are affordable to families earning the local median income, although this is 3 points higher versus Q1 2010.
The rankings for all 225 metro areas are available online.
Regardless of where your hometown ranks relative to its neighbors, home affordability remains high as compared to historical values. That said, with mortgage rates rising it’s unlikely that the Home Opportunity Index will improve.
Buying a home may never be this inexpensive again. If you planned to buy in mid-2011, consider moving up your time frame.
Continue Reading > Add a Comment |Housing Starts Jump In September, Buoyed By Homebuilder Confidence
According to the Commerce Department, the number of single-family Housing Starts increased to 452,000 units in September, a 19,000 improvement over August.
A “housing start” is a new home on which construction has started.
Housing Starts data is surveyed and broken-down by housing type:
- Single-Family Housing Starts
- Multi-Unit Housing Starts (2-4 Units)
- Apartment Building Housing Starts (5 or more units)
The government logs each type separately, but also lumps them into a single, comprehensive figure within its reports. For this reason, headlines surrounding the story seem contradictory.
For example:
- Marketwatch : Housing starts rise for 3rd straight month, up 0.3%
- CNN : Housing starts jump to 5-month high
It’s single-family homes that most Americans purchase, though, and that’s why single-family starts are the numbers worth watching. As 75% of the market, it’s more relevant than the joint numbers most commonly reported by the press.
In September, single-family starts did move to a 5-month high but buyers and sellers in Newtown should keep the figures in perspective. Just because starts are rising doesn’t mean the housing sector has turned around for good.
The first reason why is because, in September, starts were 75 percent less as compared to 5 years ago at the peak of housing. And if you feel that’s an unfair comparison, even as compared to the last 12 months, September’s data was tens of thousands below average.
Second, September’s Margin of Error happened to exceed its actual measurement. This means that the 4 percent in starts may actually turn out to be a loss of 4 percent (or more!) once the data is collected in full.
If there’s a reason to think the New Homes market is coming back, though, it’s that home builder confidence is also at a 5-month high. Foot traffic is rising and builders are optimistic about the next six months. This could mean higher sales prices and less chance for negotiation.
Buyers in search of new homes may find it tougher to make a deal the closer we get to 2011.
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