The key factors include income growth, the unemployment rate and inflation. In the blog, Nothaft noted the economic recovery will steadily gain momentum throughout 2011 due to fiscal and monetary policies that are providing low interest rates and affordable properties.
Furthermore, Nothaft indicated that the second half of 2011 will see more economic growth and job creation. "The three main ingredients that affect buyer affordability are mortgage rates, house prices, and income," he said. "With the first two at or near cyclic lows, buyer affordability is at the highest level in decades."
Other vital factors that will make up next year's housing and mortgage markets include house-price recovery, fewer mortgage originations and lower delinquency rates.
The chances of homebuyers moving into a reasonably priced home in the U.S seems realistic. The National Association of Realtors released their most recent Housing Affordability Index which showed that the median price for an existing single-family home is $171,100.
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