Prices are finally starting to firm up. This means that affordability for homes is returning to what were normal levels from before the housing market crash of 2004. In Tampa/St. Petersburg/Clearwater, 76% of the homes sold were considered affordable with our median family income of $57,400 and median sales price of $126,000.
On a national level, the U.S. median income of $63,900 was compared with sale prices of new and existing homes during the second quarter. 62.6% of the homes sold were considered "affordable" in comparison with that median income. This is part of the NAHB/Wells Fargo Housing Opportunity Index, or HOI.
The HOI reading for the second quarter is down from 65.5% first quarter, about three percentage points. NAHB Chief Economist David Crowe said, "The second quarter HOI reflects the slow but steady march toward the historic levels of price appreciation and interest rates that result in affordability levels we experienced before the mid-2000s boom. While we are seeing a slight decrease in affordability, it is still fairly high by historical standards." He is working from average mortgage interest rates decreasing to 4.44%, and the national median home price increasing to $214,000 in the second quarter.
Our market here in St. Petersburg continues to move fairly fast, but the firming of prices has truly helped bring a bit more stability to the market. I would say that overall, this is very good for our market.
If you have any questions, or would like to discuss your real estate needs, please contact me. As Your Special Agent, my job is to stay abreast of the market and help you have the most successful transaction possible!