Home prices and mortgage rates rose in the third quarter of 2013 putting buying a home out of reach for many families, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.
NAHB’s Housing Affordability Index showed that 64.5 percent of new and existing homes sold between the beginning of July and end of September were affordable to families earning the nationwide median income of $64,400. That represents a drop from 69.3 percent in the second quarter, and marks the largest index drop since the second quarter of 2004.
"Housing affordability is being negatively affected by a 'perfect storm' scenario," says NAHB Chairman Rick Judson. "With markets across the country recovering, home values are strengthening at the same time that the cost of building homes is rising due to tightened supplies of building materials, developable lots, and labor."
While housing affordability has fallen since its peak in early 2012, NAHB Chief Economist David Crowe says that a family earning a median income can still afford 65 percent of homes recently sold.
The National Association of REALTORS(R) recently reported that housing affordability has fallen to a five-year low as home price increases have outpaced income growth. “Expected rising mortgage rates will further lower affordability in upcoming months,” says Lawrence Yun, NAR’s chief economist.
We are definitely seeing this affordability being influenced higher prices and higher mortgage rates in the Tampa area. Experts predict jome prices and mortgage rates will continue to rise in 2014, making this the perfect time to buy a home.
If you are wondering how your home buying potential is effected by the increaded prices and rates, contact us and we'll be glad to review your situation with you.
When buying or selling property in today's real estate market, it's important to have confidence in your Tampa FL real estate professional! In order to be the best, I have earned the CRS (Certified Residential Specialist) and ABR (Accredited Buyer's Representative) designations. I have also been awarded a National Award of Excellency by Realtor.com. This demonstrates my desire to stay on the cutting edge of the Tampa Bay real estate market. My commitment as your Tampa area REALTOR® is to provide you with the customized real estate service you need!
I AM A SHORT SALE & FORECLOSURE SPECIALIST
As an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime! That's why my goal is to KEEP YOU INFORMED on trends in the Tampa FL real estate market using the latest sales statistics in Tampa. With prices and interest rates at historic lows, now is the right time to buy real estate in the Tampa market!
Let me know what you need and I will email you a list of properties INCLUDING BANK-OWNED, SHORT SALE & HUD PROPERTIES that suits your location and fits your budget. Please call, 813,728-3880, or email me at any time.