1. 2015 Homes sales by volume and median price were the best seen in the region since 2006.
2. Home values have appreciated an average of 6% annually the last four years. Projection for 2016 is expected to be 5%.
3. Housing inventory has been low for the last six months. This prevented our normal winter dip in pricing. Low inventory tends to accelerate price appreciation. Due to the unsettled world events and economic forecasts, this tightness in supply has not translated into accelerated appreciation in home values beyond analysts’ forecasts.
4. Interest Rates remain at historical low levels in the 3.5-4.5% range depending on loan structure. Since 1972, interest rates have averaged 8.5%. We see no pressure to increase rates more than another ½% during 2016.
5. Housing affordability is in good shape. Since 1972, 22% of our wages have been devoted to our Mortgage payment. That number has dropped to 15% of annual income over the last seven years. As a matter of fact, adjusted for inflation, since 1995 our home value and income are up. Due to low interest rates, our mortgage payment is down. This is very positive and provides families with addition funds for other pressing obligations.
I hope this market snapshot has helped make your day (and pocket book) feel better.
I love serving you and look forward to answering any questions you may have. Just call/text or email me. Oh, and thank you so much for the four referrals you sent to me in January. I enjoy so much working with your friends and family.