Home Affordability Rises to Record Levels

Nationwide housing affordability jumped 10 percentage points during the first quarter of 2009 to its highest level in over 18 years. Buying a home is always a highly personal and emotional decision. But the challenges – and opportunities – of today’s real estate market have elevated the scope of those decisions to a whole new level. Every buyer today has a very personal agenda. They want to achieve the maximum results possible, and in the end, feel good about the transaction. Columbia Mortgage is equipped for the job to be their trusted consultant, to guide them throughout the process and better help them reach their goals.

The recently enacted First-Time Homebuyer Tax Credit is boosting a big opportunity for REALTORS across the country. Traffic and interest have increased as the word has spread to potential homebuyers. With limitations and rules with the credit, a large percentage of people stand to benefit. According to the National Association of REALTOR’s economists, the credit could contribute up to 500,000 more home sales this year. With first-time homebuyers making up nearly 40% of the market in the most recent NAR home sales release; coupled with historic affordability and record low interest rates, the new credit is yet one more reason why it is a good time to buy for many people who have been sitting on the fence.

The great thing about challenging times is that they create opportunity. But the funny thing about opportunity is that it is often very hard to see until the window is almost closed. Imagine the potential response of first-time and other borrowers who are looking at their options. They may say, “WOW! Homes are now deeply discounted. There’s an abundance of choices, so I don’t have to settle and sellers are willing to negotiate the most favorable terms for me! But wait, I will need a mortgage and what incredible luck for me to be in the market for a mortgage when interest rates continue to be close to historical lows.? Think about that. For many, these opportunities may not be obvious if they are focused on only the challenges.

Rates continue to be low by historical standards, so it’s crucial that we stay steadfast in our commitment to providing the best loan package suited to each buyer. Our long term success is directly related to our positive energy, passion, commitment, communication, utilization of tools, industry knowledge, and the continued reputation that we are experts in our field. Home ownership has never been more affordable. It’s a great time to take advantage of the low rates and high inventory.

Call on Columbia Mortgage and we’ll show you how you can benefit in today’s market.