National Real Estate Market Update
Existing-home sales ticked upward 3.7 percent in March, according to a recent report by the National Association of Realtors (NAR). Existing-home sales, which include recently purchased single family, townhomes, condominiums, and co-ops, are currently on pace to hit 5.1 million units nationally.
"Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,” said Lawrence Yun, NAR chief economist. "With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain – primarily because some buyers are finding it too difficult to obtain a mortgage. For those fortunate enough to qualify for financing, monthly mortgage payments as a percent of income have been at record lows."
Statistically, housing afordability is at a 40-year high considering the average monthly mortgage principal and interest payment for purchasing a median-priced existing home is at 13 pecent of gross household income. Freddie Mac reports that the national commitment rate for a 30-year fixed-rate mortgage was at 4.84 percent in March, down slightly from 4.97 percent available in March 2010. The average credit score for buyers has risen to 760, compared to 720 in 2007. The average credit score for an FHA loan recipient rose to 700, up from 630 in 2007.
Housing inventory is up 1.5 percent to 3.55 million existing homes for sale. This represents an 8.4 month supply at the current sales pace.
