Tag Archive: home affordablility

Property Values Soar

Lake Norman real estate values on the rise!

Property values are on the rise and intrest rates have been on the rise as well. All of this leads to lower affordability and higher monthly payments. If you are in the market for a new home contact The Lake Norman Homes Team now @ 866-LakeNorman (525-3667) while rates are still great and home prices are still reasonable.

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Housing Affordability Index Hits Record High

Housing affordability conditions have reached the highest level since record keeping began in 1970, according to the National Association of REALTORS®.

NAR’s Housing Affordability Index rose to a record high 206.1 in January, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power.

An index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent downpayment and 25 percent of gross income devoted to mortgage principal and interest payments. For first-time buyers making small downpayments, the affordability levels are relatively lower.

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, says this latest data underscores buyer opportunities in today’s market. “This is the first time the housing affordability index has broken the two hundred mark, meaning the typical family has roughly double the income needed to purchase a median-priced home,” he said. “For buyers who can qualify for a mortgage, now is a very good time to become a homeowner.”

NAR projects the affordability index for all of 2012 will be at an annual high, with little movement in mortgage interest rates or home prices during the year. “Housing inventory levels have declined to a point where conditions are becoming much more balanced in much of the country,” Veissi said. “If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices with modest gains in areas with stronger job growth.”

For more information, visit www.realtor.org.

Mike Spruell
Realtor®/Broker/ePRO
The Lake Norman Homes Team
Keller Williams Realty
www.LakeNormanRealEstate.pro
866-LakeNorman
704-907-7907

Lake Norman Real Estate Market Update December 2011

Lake Norman Homes
In December 2011 68 homes sold in the Lake Norman area, a 10.5% decrease from the 76 homes sold in November 2011. December 2011 sales figures decreased 28.4% from December 2010 when 95 homes sold in the Lake Norman area.
The average sales price increased 18.4% from $367,233 in November 2011 to $434,857 in December 2011. The December 2011 average sales price decreased .1% from the December 2010 average sales price which was $435,193.
Average days on the market increased 36.9% from 149 days in November 2011 to 204 days on the market in December 2011. December 2010 average days on the market were 173, a 17.7% increase in market time.
Currently there are 659 homes for sale in the Lake Norman MLS area. The average home is a 3 bed/3 bath with 3,387 square feeet and an average list price of $650,120 up 4.1% from the November average list price of $624,246. The average days on the market are 192. 66 Lake Norman homes are currently under contract, down 104.5% from November! (more…)

How is your neighborhood selling?

Our new absorption rate wizard will show you the number of sales over the last year, average sales price, homes currently on the market and the current inventory in months supply. This information will tell you how the market is doing in your neighborhhod.

To begin start typing your neighborhood and select it from the drop down list.

Average Sales Price Continues To Rise

The average sales price in the Lake Norman area went up for the second straight month to $503,223. The average sales price at this time last year was $414,115. Thats an increase of 21.5% from 2010! The year to date average sales price is up 4.5% to $426,230.
The median sales price also increased for the eighth month in a row to $350,000. The median sales price at this time last year was $322,000. Thats an increase of 8.7% from 2010. The year to date average median home price is up 12.3% to $328,500.
The inventory of homes for sale is down 13.4% from this time last year.

Click image to enlarge.

Lake Norman real estate market

If you have any questions or if you need any help at all please don’t hesitate to contact us.