Harry’s Monthly Real Estate Insight

Our market had a good spurt in March and has been better than last year, but not enough to make any real significant changes. It is going in the right direction, which is good news. The really good news is shown in the “Housing Affordability Index” (Wells Fargo data). What this index computes is how much, as a percentage of income, it takes to purchase or rent a home. It is affected by Supply (listings), market demand (number of buyers) and the cost of financing. We have gone from a market that had way too many listings, about a ten month inventory, to a seven month inventory. We want a five to six month inventory. The biggest positive effect on the Housing Affordability Index is that prices have declined to where it takes, on average, 37.5% of the average income to buy a home. This is based on a medium priced home at $220,000 with a payment (PITI) of $1,242.00. That is a very good number for the incomes in the $50,000.00 to $75,000.00 income range. Now there are variables to this, but in general, this is good news for buyers. SO BUYERS, WHAT ARE YOU WAITING FOR! Interest rates are at their lowest and they have to go up, so if you are thinking of getting a new home, now looks like a great time to do it!

On a community note. Have you seen the new YMCA Camp Arrowhead on Kenyon Road? Wow, indoor swimming pool, archery range, climbing tower, track, huge fields, indoor learning areas and much more. I wish my grandchildren were old enough to go! I wish I could go, in fact, maybe I will go! Only $130.00 (member) for one week including lunch and snack from 6 am to 6 pm. Scholarships and financial assistance are available. Call 934-9622 to register your kids. Filling up, better call today! Opens June 18 for ages 5-12. Please send this info on to someone you know that might be interested. Thanks!

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Specializing in properties in South Hampton Roads, Virginia.