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With mortgage rates dropping steadily, the buying power has increased 9% nationally this year:

Who has benefited around NSDCC? 

Of course we’re just looking at averages, your mileage may vary.  But it look like both buyers and sellers have benefited – prices are up slightly, which means that the buyer’s payment should actually be a little lower than anticipated:

Sept-Nov # of Sales Avg SF Avg $/sf Avg SP
2010
591
3,009sf
$385/sf
$1,120,111
2011
590
2,982sf
$381/sf
$1,099,623
2012
814
2,944sf
$389/sf
$1,122,646

If this year’s rising prices were entirely driven by dropping rates that have now flattened, could next year be disappointing for sellers? Can sellers just live with this year’s prices?

I don’t think buyers are married to an exact payment; if they can get close to their desired goal (within a couple of hundred bucks per month) they will proceed with the purchase. But if sellers ask them to bump it up another notch, will buyers give in?

http://firsttuesdayjournal.com/homebuyer-purchasing-power-pushes-the-recovery/

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