The Anne Arundel County Housing Affordability Index declined in December after climbing the month before. The index is now back to the October 2009 level.
| Anne Arundel County Housing Affordability Index | ||||||
| Month | Anne Arundel County Average Sold Price | Nat'l Avg Monthly Contract Mtg Rate | Monthly Payment PITI | Annual Income Needed to Qualify (28%) | Housing Affordability Index | Percent Change Month to Month |
| Oct-09 | $349,961 | 5.0 | $1,868 | $87,277 | 82.5 | 0.5% |
| Nov-09 | $334,287 | 5.0 | $1,783 | $78,835 | 86.4 | 4.6% |
| Dec-09 | $349,748 | 5.0 | $1,865 | $79,954 | 82.6 | -4.6% |
The Anne Arundel Housing Affordability Index measures just how much income is needed to purchase a home in the county based on the average sold prices, current national mortgage rates. When the index is below 100.0, it means that more income is needed to purchase a home than the Median Household Income for the county. Conversely when the index is above 100.0, it means less income is needed to purchase a home. Thus, low index number mean homes are less affordable, while high index number mean that homes are very affordable.
The last time the index last peaked at 106.8 in January 2001, then followed a long decline till May 2006. The index dipped to 56.6 in May 2006 when the average sales price for a home in Anne Arundel County ready $443,396 and the average national mortgage rate soared to 6.6%. Combine together - sales price and mortgage rates - can have dramatic impacts on affordability. Recently as county home prices have declines, mortgage rates remain low, thus the affordability is on the rise. In December of 2008 the index was 75.7, a year later in December 2009 the index was 82.6, thus homes were on average 8.4% more affordable than the year before.
More information about the Anne Arundel County Affordability Index can be found at the Maryland Econometrics website.
If you are interested in buying or renting a home in Annapolis, Maryland or the surrounding area and want to tour any property currently on the market, or if you have a home to sell or rent in Annapolis, Maryland and want a professional consultation on current market conditions, please contact me at 410-923-3217 or e-mail me at showell@cbmove.com or visit my website at LiveInAnnapolis.com.
Stephen Howell came to Annapolis to sail the Bay in 1994. What he discovered was a whole new lifestyle. Ever since Stephen Howell has been successfully helping others make the most of Annapolis. You'll find that with the right professional by your side, you can Live the Lifestyle and Live in Annapolis.
Stephen Howell and Rocky (his lab-mix from the SPCA of Anne Arundel County in Annapolis) live on the Chesapeake Bay near Annapolis, Maryland. He works in the Annapolis real estate market. His website lets people search the Washington and Baltimore metropolitan area MLS. Buyers can also search for waterfront homes along the Chesapeake Bay. His website has current real estate data on Annapolis, Anne Arundel County, and Maryland.
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One of the good things about the market downtown the past few years is that real estate is more affordable. At the peak of the boom a few years ago, only 7% of San Diego households could afford a median-priced home here. Now that figure is up to 53%, and that certainly bodes well for Realtors helping people buy and sell homes.