Gary Keller and Jay Papasan
The numbers that drive real estate
- Home sales
- Home prices
- Mortgage rates
Home sales activity has increased 1.7% in 2011 yet home prices in 2011 contracted again by 3.9%. The median sales price remain at the lowest level since 2003. Historical appreciation rate for long term is 4%
Is this a good time to buy? Depends. What is your purpose of buying?
Inventory as a country is at 8.3 months supply.
Mortgage rates continue to decrease with 30 year rate at 3.7%, which is the lowest in history! How much lower can it go?
1% in interest rate increase equals 10% drop in home price as far as house payment is concerned.
From 2007 to today, the price of construction has decreased 17%
Affordability of the housing market is the lowest in HISTORY! Homes are the most affordable in the United States than they have been since numbers have been recorded.