We got another positive housing report last week, this time with Pending Home Sales shooting up a surprising 3.6% after a mere 0.7% was expected by the experts. This makes five consecutive months of gains for Pending Home Sales and that's the first time that's happened since July 2003. Low mortgage interest rates and affordable home prices are what's moving things upward.
The affordability is amazing. The median existing home price in June was $181,600. But a family earning the median income – $60,700 – could actually afford a home costing $289,100. With 20% down, they would spend about 25% of their gross income on the mortgage payment! And rates dropped again last week, keeping things very affordable indeed.
The Wall Street Journal reported inventories of homes for sale fell again in many U.S. cities last month. In 28 major metro areas, the supply of homes for sale at the end of July was down 2.5% from June, including single-family homes, condominiums and town houses. This compares to an average drop for July of just 1.0% over the last 25 years. Compared to July 2008, inventory in these 28 metros was down a whopping 27%!
- Jeanette Eide
- Bellevue, Washington
- I’m a full-time professional Realtor specializing in residential resale and new construction in Seattle, Bellevue, Redmond, Kirkland, Issaquah, Newcastle, Sammamish, Bothell, Mill Creek, Snohomish, Everett, Woodinville, Kent, and Renton. Together with my husband Erik, we have over 17 years experience. We take the time to listen – getting to know you and establishing your exact needs. From there, our sole focus is getting you where you want to be, on time, in the smoothest manner possible. Together with our team of professionals, the closing of your transaction will be handled knowledgeably with the attention to detail you expect and deserve.
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