Theo Therme made a good point in the comments. All of this is meaningless unless you can see the numbers. WordPress won’t allow me to upload an Excel file. But you can see the numbers at the link below:
I just received a press release and data from the Humboldt County Association of Realtors. You can make up your own mind about what it all means.
I did hear from at least one real estate agent who said it was a good market in that some people who previously couldn’t afford to buy homes now can.
So a downturn in the market is a good thing. Or a bad thing.
Heck, it all depends on your situation, what you own and what you don’t own.
The median home sale price in McKinleyville in January 2008 was $299,000. Avg. market rate was 6.04 percent. The qualifying income was $70,468.
Here’s the unedited press release, for what it’s worth:
Eureka…The Humboldt County housing affordability index released by the Humboldt Association of REALTORS® (HAR) this week, shows steady gains in the number of local residents that can afford to buy a home.
“The figures just released for January 2008 show the highest percentages since May of 05” reports Association president, Tom Hiller. The recent slow down in our real estate market has created more buying strength for our local market. Those adjustments include steady inventory, softer prices and very good interest rates. “Buyers now have time to shop for good deals and investigate loans that will work for them in the long run.” Hiller said.
The HAR has been compiling housing statistics since 1999. The Association updates their Housing Affordability Index on a monthly basis. The index is compiled using the residential median sold price taken from our local Multiple Listing Service, the National Average Effective Mortgage Rate as reported by the Federal Housing Finance Board and the median household income taken from the US Census Bureau. The median sold price and average mortgage rate are used to derive the monthly principal and interest payment assuming a 20% down payment on a 30 year loan with 1% property taxes and estimated insurance. It is assumed the monthly payment cannot exceed 30% of the total monthly household income. The number of households that meet the qualifying income is divided by the total number of households to arrive at the percentage of households that can afford to purchase a home at the median sold price.
All real estate is local; the decision to buy or sell is best when linked to real market facts provided by local REALTOR® professionals. Sellers can also take advantage of the recently improved market conditions. “If you are selling, your REALTOR® has the tools to evaluate the fair market value of your home. They are the experts, listen to them about pricing, marketing, inspections, disclosures, staging and financing incentives.” Hiller said.
The Humboldt Association of REALTORS® provides ongoing education, training, information and support services to help it‚s members succeed. In partnership with their business affiliates, they add value to the community by advocating private property rights, providing community service, and promoting quality of life. Members of the Association are dedicated to the highest standards of ethics and professionalism.