Record mortgage rates and incredible pricing opportunities have created the most affordable climate for home buyers in over 20 years. This is backed by data compiled into an “affordability” index by the National Association of Home Builders and Wells Fargo. This index measures the percentage of homes sold during the previous 3 months that could have been afforded by households that earn $64,200, which is the national median income. Currently the index is at 75.9%, which is the highest affordability level it’s been in 2 decades, and is also higher than the previous calculation from 3 months prior (72.9%). Of course some areas of the country have even greater affordability than others. For instance, parts of Ohio have an affordability index of 95.1%, but generally areas that sit this high on the index were the ones hit hardest by the economic downturn. The National Association of Home Builders/Wells Fargo index measures both new and existing homes affordability, and is an excellent indicator on the stability of the real estate market.
Also Piggybacking on the news of this affordability index has been this week’s new home sales reports. The Census Bureau reported that January’s new home sales have exceeded initial forecasts, reaching an annual rate of 321,000 according to CNNMoney.com. This increase in new home sales, as well as recent pickups in new home starts by home builders, is further indication of a climbing market. With all of these factors in place, the pace of January’s new home sales actually hit its highest point since home buyer tax credit program of 2010.
One Loudoun is successfully kicking off 2012 with a variety of beautiful new homes for sale, and the with favorable buying conditions nationwide the time to purchase a new home has never been better! Our modern and sophisticated community located in the heart of the nation’s most affluent county is the hottest thing to hit the DC area since cupcakes. We invite you to stop in or contact us for more information on One Loudoun, Loudoun County’s NEW downtown.