Tri-Cities, Washington (Kennewick, Pasco, Richland) Real Estate Center

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Kennewick, Washington

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You will be late if you wait to buy Real Estate

Posted at Tri-Cities, Washington (Kennewick, Pasco, Richland) Real Estate Center by Paul Roy

Mar. 3, 2009

Categorized in: Tri-Cities Market Conditions

Tagged with: buying a home in richland, kennewick, pasco, wa

If you are contemplating buying a home, now may be the perfect time to make a purchase -- if you have the money and a secure job. According to National Association of Realtor statistics due to low historical interest rates the home affordability index is at it's lowest levels since 1970.

In addition with the housing economic stimulus programs buyers are buying again., This means, there are going to be more buyers in the market, which is going to cause home prices to go up, When you stimulate home prices to go up, that affects the economy in a positive way, which raises interest rates. What people don't realize is, by the time they hear that things are better, (their opportunity) is already gone. Real Estate experts across the nation are advising that buyers who act now rather than wait are likely to see the best return.

NAR’s Housing Affordability Index rose 13.6 percentage points in January to 166.8, a new record high.

The HAI, a broad index of affordability using consistent values and assumptions over time, shows that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970.

The HAI indicates a median-income family, earning $59,800, could afford a home costing $283,400 in January with a 20% downpayment, assuming 25% of gross income is devoted to mortgage principal and interest; affordability conditions for first-time buyers with the same income and small downpayments are roughly 80% of that amount. A year ago, the typical family could afford a home costing $263,300.

NAR President Charles McMillan, said it’s ironic with the weak housing market that affordability conditions have improved dramatically. “Housing affordability is at a record high - the buying power of a typical family has risen significantly,” he said. “With the drop in interest rates, a median-income family can afford a home costing $20,000 more than a year ago for the same monthly mortgage payment. With the strong housing stimulus, we are hopeful inventory will get trimmed and help prices to stabilize in many areas by the end of this year.”

Lawrence Yun, NAR chief economist, said “Conditions have been aligning very favorably for home buyers with the exception of consumer confidence. But I am hopeful that sales will turn around by late spring and early summer because history suggests that home sales can rise even in times of job losses when housing affordability rises.”

Existing-home sales for February will be released March 23; the next Pending Home Sales Index will be on April 1.

Even during these current economic times, real estate has once again proven to be your best investment. Not only does it provide the basic requirement of shelter the statistics show that had you invested $100,000 dollars in the stock market currently your invest would have brought you no return or maybe even a loss.

If you had used that same $100,000 in 1997 to purchase a home, that home would have appreciated on average by 66%. Contact your trusted Real Estate Advisers at Coldwell Banker Tomlinson Associated Brokers, We have been serving Tri-Cities, Washington with their Real Estate needs since 1968. Visit us on the web at www.cbtabs.com to search for homes in Richland, Kennewick, Pasco, and the surrounding areas.

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