Monday, June 13 2011
I have some news and observations this month that I think you will find interesting. First on the national front, housing affordability has reached an all time high. This calculation, released by Wells Fargo and The National Association of Home Builders, says that 74.6% of all homes sold in the first quarter of 2011 were affordable for families earning the national median income of $64,400. This is the highest level in the 20 years this data has been tracked. The two driving factors in this calculation are the price of homes and interest rates, both of which are at very low levels. In fact, according to Corelogic, national home prices have declined 33.8% from their peak. Keep in mind that is a nationwide statistic.
Locally home values never declined that much. In fact from our peak average annual sale price of $129,421 in 2006 prices have only declined only 5% based on the Jan.-May 2011 time period. Average sale price for the first 5 months of this year is $122,939 and has increased from 2009 to 2010 and again so far this year. As I have said several times in this letter not only have prices in our area stabilized they have started to increase.
Homes may never be more affordable and contrary to popular opinion there are not too many homes currently on the market in our area. Based on May sales we only have 8.04 month’s supply of homes currently listed. That is lower than the average annual month’s supply for every year from 2007-2010. There are almost 1000 fewer homes currently listed than there were at our peak in September of 2007. In fact, I’ve heard several buyers mention that there aren’t many potential homes to see.
At FCTuckerEmge.com and TuckerMobile.com we have more tools to help both buyers and sellers than any of our competitors. Go online or call me today, whether you are thinking about buying your next home or selling your current home. The time is right.
We are continuing to improve our new website for TheTrentiniBlog at EvansvilleReaestate.info We invite you to visit our site for updates on real estate information as well as information on the Tri-State area.
Kathy and I wish all you happy summer season and safe travels if you are going on your holidays.