People in the future will one day speak of the year 2011…what do you think they will say? I think history will remember last year as a time of great opportunity. It was a time when interest rates were at historic lows and housing affordability was at historic highs. First time home buyers could buy a home and pay less on a mortgage payment than they would pay in monthly rent. And there is nothing like the feeling of walking into your first home or new home and knowing it belongs to you! Buyers with cash and investors could purchase a home or condo for less than the price of a nice car…crazy!
- In Orlando, 2011 was the year when the average interest rate went below 4%! (3.99% in December)
- In Orlando, 2011 was the year when the median price hit $94,900! (January 2011)
- In Orlando, 2011 was the year when housing affordability hit 278.55% (January 2011) and ended the year at still over 250%!
Last year offered amazing opportunities for buyers of all kinds; but it also had some glimmers of hope for sellers. In Orlando last year, home sales remained steady between 2000 and 2600 per month…never going below 2000. We ended 2011 with the median sales price up 12.38% from 2010 and the average sales price was up 18.85% from 2010.
Who knows what the year 2012 has to offer – I wish I could see the future. What I do know is that 2011 was a good year to buy real estate and 2012 still has many opportunities to offer. What do you think will happen in the real estate industry in 2012? Will interest rates go up? Will hope prices appreciate?
P.S. (A housing affordability index above 100 signifies that family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment)
