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AFFORDABILITY IMPROVING

March 3rd, 2009

The National Association of Realtors released the monthly pending sales numbers. The news is mixed:

The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in January, fell 7.7 percent to 80.4 from a downwardly revised reading of 87.1 in December, and is 6.4 percent below January 2008 when it was 85.9. The index is at the lowest level since tracking began in 2001, when the index value was set at 100.

This is the bad news. Sales have clearly slowed nationwide.

NAR’s Housing Affordability Index rose 13.6 percentage points in January to 166.8, a new record high.² The HAI, a broad index of affordability using consistent values and assumptions over time, shows that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970.

Here is the wonderful news. Affordability is at a 30 year best. This trend is also clearly happening for Maui real estate as well.

For details contact us.

AFFORDABILITY IMPROVING

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