C21AGVoices

So long as mortgage rates remain rock bottom, the autumn season is looking like a terrific time to buy.

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According to the Commerce Department, the number of single-family Housing Starts increased to 452,000 units in September, a 19,000 improvement over August.

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Overall, buyers are being drawn into housing by low mortgage rates, affordable homes, and ample supply. If the August Pending Home Sales Index is foreshadowing the fall housing market, home prices appear slated to rise.

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Just one week after reports of Existing Home Sales and New Home Sales plunging, the housing market signaled that the next few months may fare better than did May and June.

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With home prices holding firm and mortgage rates still dropping, home affordability is reaching new heights.

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After reaching a 3-year high just 90 days ago, the National Association of Homebuilders’ Housing Market Index is now at a multi-year low after falling by almost half.

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CNNMoney.com recently ran a piece titled “Where Homes Are Affordable”, listing 25 communities around the U.S. in which median incomes are relatively high and median homes are relatively low. It’s a housing market “bank for your buck” list.

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The press is referring to the May New Home Sales report as “poor”. A closer look, however, shows that may not be the case.

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Single-family housing starts plummeted to a one-year low in May, just 30 days after soaring to a 20-month high. It’s no wonder home builders are confused.

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Contrary to what you may have read (or heard), the federal home buyer tax credit has not been extended past June 30, 2010. At least not yet.

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