If you work primarily with buyers, you’ve probably used historically low interest rates as one of the carrots to dangle in front of potential clients. Now there’s even more positive food for thought to offer in the form of a recent National Association of Realtors report showing housing affordability at its highest level since records started being kept in 1970.
NAR’s Housing Affordability Index rose to a record high 206.1 early this year, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power. And the more positive figures you have to show your prospects, the greater the possibility they’ll work with you to get a deal done.
The high affordability figure, an improving jobs outlook and the holding steady of low interest rates have many agents optimistically looking ahead and letting their clients know about it.
“I haven’t seen sales trends like this early 2006. Things are really picking up and multiple offers are being made. I’m telling people I work with that some quick decisions will likely need to be made. Otherwise they could miss out.”Josh Herbel, a HouseHunt agent in the Southern California desert region of Rancho Mirage