Earlier in the year the NSDCC averages were touching $500/sf, but April finished at $448/sf.
It looks like the typical number of sales in May should be in the mid-200s, and last year’s 362 sales was a sign of how wild the frenzy was in early-2013.
NSDCC May Sales:
| Year | |||
| 2010 | |||
| 2011 | |||
| 2012 | |||
| 2013 | |||
| 2014 |
If it weren’t for the short-sale fraud and those blog guys talking smack, the average pricing might have started rising in 2011 and 2012 – which would have mellowed the 23% increase over the last 24 months.
Those 3.45% rates in April 2013 certainly helped the frenzy. Even though prices had risen about 10% between 2012 and 2013 the monthly payment of a traditional loan was less than 2010 and 2011 (rates were close to 5% in these years). It’s only now in 2014 with the higher rates and higher prices that really spiked the monthly payment to a point that’s probably putting pause on this market.
This little table will probably format poorly but it does give you a sense of how affordable things got when the rates dropped hard in 2012 and 2013.
Assume
Avg SqFt 2500
Year | Avg Price/SF | Avg Price | Loan Amount after 20% down | Interest Rate | Monthly Payment
2010 | 388 | 970000 | 776000 | 5.1 |4,213
2011 | 383 | 957500 | 766000 | 4.84 | 4,037
2012 | 380 | 950000 | 760000 | 3.91 | 3,589
2013 | 416 | 1040000 | 832000 | 3.45 | 3,713
2014 | 469 | 1172500 | 938000 | 4.34 | 4,664 – This is a big jump compared to last year