The numbers of the Housing Affordability Index are falling, and some pundits say the housing market may be headed for a slowdown. Some are concerned that many people looking to buy their Dream Home in Greenwood may be priced out of the market. Below is a snapshot of the index since 2009.
Although the index has fallen over the last four years, it is important to take into account that at that time, there was an overabundance of homes for sale, many of which were distressed property (foreclosure or short sale). This caused prices to drop dramatically and distressed properties to sell at extreme discounts. The index is currently falling because the market is recovering and values are coming back nicely. Below, you can see that, even though prices have increased, historically low mortgage rates have put the market in a better position than every year for the nineteen years prior to the economic crash.
In short, the Housing Affordability Index is in great shape and does not pose a threat to the continued recovery of the Greenwood Real Estate Market. If you are considering buying or selling your home and would like more information, please visit our website or contact us personally at (864)341-7774 or lakegreenwoodproperty@gmail.com.
