Homes Are Affordable in Frederick Md

Friday, January 28, 2011

In Frederick Maryland, home affordability is at an all-time high, and has been for 7 straight quarters.

As Realtors®, Chris and I are always hoping its a good time to buy for someone,… but its not always for everyone. Every market is an opportunity for someone. Everyone has different real estate needs and goals. Not every market meets everyone’s goals.

With that said, this is a great market for Frederick buyers with good credit, and even in some cases for those with a few credit challenges. Buyers who will live in the home 5 to 7 years, and buyers with job stability will find that today’s real estate market is full of opportunity.

* Buyers who are patient and flexible about move-in dates can find a great deal with a short sale.

* Buyers who are looking to take on a little work in “sweat equity” can find a great deal with a foreclosure.

Home Affordability

The National Association of Home Builders and Wells Fargo have compiled a Housing Opportunity Index (HOI) for 2 decades. The Index compares the median income with the median home price. Statistics are calculated nationally, as well as for 233 metropolitan areas.

The national HOI for the 3rd quarter of 2010 reported that 72.1% of all homes sold in that quarter, both new and existing homes, were affordable to families earning the national median income of $64,000. The median home price is $180,000 nationally. This was the 7th consecutive quarter that affordability remained at unprecedented high levels.

Until the first quarter of 2009, when affordability reached a record-high 72.5%, the HOI rarely exceeded 67% and never hit 70%. Low prices and historical low interest rates have combined to create the highest home affordability since the HOI has been calculated, and according to other data, the highest affordability in 50 years.

Home Affordability in Frederick Md

So, what about here in Frederick Maryland, how affordable is housing now? The Bethesda-Rockville-Frederick Metro Area figures state that 64% of homes sold in the 3rd quarter 2010 were affordable to the median-income family earning $109,600. The median sale price was $350,000.

Closer to home, Frederick County is even more affordable than other areas in the region. Median household Income in Frederick County is $78,400. The median home price in the 3rd quarter of 2010 was $236,000. The HOI for Frederick County is roughly 70%.

In other words, of the homes sold in Frederick County in the 3rd quarter, 70% were affordable to median-income families.

If this is the right time for you to buy, use our free search tools to find your Maryland home:


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The Highland Group – Frederick Md Real Estate
Chris & Karen Highland *    301-831-9947
Turning Point Real Estate
email us: isell4u2@msn.com
TEXT US:  301-401-5119