The Housing Crisis Is Over!!!
Imagine the day. The decline of housing prices is over and home owners are finished with being the receivers of kicks in the rear. I can imagine parades in the streets, balloons, clowns, and people in Northern VA speaking to their neighbors for the first time.
The only people who aren’t there to enjoy it are the buyers that have been riding the fence for the last 3 years waiting until the bank finally sells homes for $100 the way late night television promises.
This is obviously a little extreme but I wanted to share with you an article that I just read from THE WALL STREET JOURNAL giving the most balanced and honest approach I have seen to when this market correction will actually correct. The article shows previous housing corrections and the factors that brought our economy back in to a place of stability.
HERE IS A SMALL EXCERPT
“During the 1990’s and early 2000’s it took 19% of the average monthly income to service a conforming mortgage on the average home purchased. By 2005 and 2006, it was absorbing 25% of monthly income. For first time buyers, it went from 29% of income to 37%. That just proved to be too much… This caused the bubble to burst.
Since then, house prices have fallen 10%-15%, while incomes have kept growing and mortgage rates have come down 70 basis points from their highs. As a result, it now takes 19% of monthly income for the average home buyer, and 31% of monthly income for the first time buyer to purchase a home. In other words, homes on average are back to being as affordable as during the best of times in the 1990’s. ”
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Maybe we’ll all even out soon -
Bryan & College Station, Tx real estate market is even with 2007 and 2007 was a banner year. Looks like Texas is the place to be!
Susan Hilton – Realtor & Sales Trainer for Century 21 Beal, Inc. #1 in Real Estate in Bryan and College Station Home Sales – Bryan College Station Real Estate & Community Blog