Spring activates the Real Estate Market in New England; more homes are sold in this period than any other time of the year. Houses look their best when framed by spring blossoms, and parents like to time their moves to coincide with school schedules. While current economic conditions have reflected relatively flat home sales, there are a few promising reports in the Real Estate market.
- The National Association of Realtors announced that pending home sales were up 2.1% nationally, 10% in the Northeast over the same period last year.
- Housing Affordability Index rose nearly one percent, a 36.3% gain over a year ago. A family, earning $59,700, could afford a home costing $285,600 in February (with 20% down assuming 25% of income is devoted to mortgage principal and interest). A year ago that same family could only afford $164,600.
- Mortgage rates continue to set record lows and applications were up.
These factors make for incredible buying power for homebuyers, especially for the first time homebuyers when you consider the added bonus of an $8,000 federal tax credit.
This Week's Real Estate Insight: The numbers do not mean that we are out of the woods yet, but a few more months of positive numbers and we will be able to call it a trend.
