The the December Pending Homes Sales index reading today, from the National Association of Realtors, ose 6.3% to 87.7 from an upwardly revised reading of 82.5 in November. The December reading was 2.1% higher than December 2007 when it was 85.9.
Correspondingly NAR reported that the Housing Affordability Index rose 10.9% in December to 158.8, the highest national score on record. The index measures what a median income household can afford where 100 means that the median household can just afford a median priced home with 20% down at today’s average mortgage rates. At this higher level of affordability, median households can afford far more than the median home.
Both of the indicators are show nice movement for the year ahead. Th efirst indicator show Buyers are moving off of the sidelines and the second shows why. It now make financial sense from a affordability stand point to invest in a home.
We have also seeing a very large uptick in the number of searches we are seeing at Boulderhomesource.com. Users are no longer just looking for homes, but asking to set up appointments to view homes and begin the process of Buying.
It will be very interresting to see how the stimulus package plays out over the next couple of days.