While there are a number of ways to look at the housing market, one of the tried and true methods for measuring the market is the Housing Affordability Index. The HAI measures median household income relative to the income needed to purchase a median-priced house. The HAI has become a great tool determining what the average homeowner should be doing in the market.
Currently, we’re fortunate in that the HAI is stronger in our state than the national average. This means that it’s more affordable to by a home here than in many other parts of the country. As long as the market maintains its current inventory levels home prices will continue to increase.
So, if you are a buyer, acting on your new home wishes should probably happen sooner rather than later. Prices simply aren’t going to stagnate until the market gets oversupplied with homes.
For the seller, your prospects are a bit more challenging. Home prices will continue to increase, which generally means that holding on to your property could create equity, and eventually profit, when you sell. But holding on to your property too long means you’d be selling in a saturated market.
In a nutshell, home buyers can expect to see an upward trend in home prices with the current number of homes on the market. Getting into your next house sooner, rather than later, is in your best interest. If you’re considering selling with the current market conditions, you’re also in a good position to act depending on your long term goals because home prices are still increasing.
At any rate, you can rest easy knowing that you are in a strong housing market where homes are more affordable here than most other areas of the country. As your real estate professional, I’ll be your “eyes in the sky” and keep an eye on inventory levels, as ultimately that will determine YOUR strength in the market.