Will Housing Affordability Be a Challenge in 2017

Home industry experts are saying that the housing market may be heading for a slowdown in 2017 based on rising home prices and a jump in mortgage interest rates. One of the data points they use is the Housing Affordability Index, as reported by the National Association of Realtors (NAR). Here is how NAR defines the index: “The Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national level based on the most recent price and income data.” Basically, a value of 100 means a family earning the median income earns enough to qualify for a mortgage on a median-priced home, based on the price and mortgage interest rates at the time. Anything above 100 means the family has more than enough to qualify. The higher the index, the easier it is to afford a home. Why the concern? The index has been declining over the last several years as home values increased. Some are concerned that too many buyers could be priced out of the market. But, wait a minute… Though the index skyrocketed from 2009 through 2013, we must realize during that time the housing crisis left the market with an overabundance of housing inventory with as many as one out of three listings being a distressed property (foreclosure or short sale). All prices dropped dramatically and distressed properties sold at major discounts. Then, mortgage rates fell like a rock. The market is recovering, and values are coming back nicely. That has caused the index to fall. However, let’s remove the crisis years and look at the current index as compared to the index from 1990 –

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MLS#40768090 $ $953,000 www.izabellalipetski.com 1067 FOSTER ST, ALAMEDA, CA 94502

Wanted to share this article about my daughter Laura Lipetsky

Liu leads after impressive novice ladies short

Huang on Liu's heels entering free skate; Cui, Rich round out top four

Posted 1/16/17 by Lynn Rutherford

Alysa Liu won the U.S. intermediate title last season, and she's in position to top the novice ladies field in Kansas City. The Oakland-based skater took first place in the short program Monday, netting 48.89 points for her "Puttin' on the Ritz" routine. -Jay Adeff

Triple-triple combinations, triple flips and triple lutzes were flying during the novice ladies short program at the 2017 U.S. Figure Skating Championships on Monday, with most of the 12 entrants attempting one or more of the difficult elements.

"I think this is the best group of novices I've seen, ever," veteran coach Tammy Gambill said. "They are so strong, and they are really fierce. It's great for the U.S. to have so many young kids coming up with so much potential."

Coaches credited this overall increase in technical difficulty to U.S. Figure Skating's decision in May 2015 to award bonus points for novice skaters' triple-triple combinations as well as for each different triple jump. The bonus system, which was designed to help U.S. skaters better compete with Russian and Japanese athletes on the Junior Grand Prix circuit. "The practices for these novice girls were amazing; there were five or six girls with triple-triples, and all five triples," Chicago-area coach Alex Ouriashev said. "It's a really big improvement. The American girls are getting very strong."

Alysa Liu, a diminutive 11-year-old powerhouse, led the talented pack after hitting a triple lutz-triple toe combination out of a split jump as well as a triple flip in her energetic "Puttin' on the Ritz" short. Her 48.89 points gave her a 1.22-point lead, but the top five skaters stand only about a point and a half apart entering the free skate.

Laura Lipetsky, who coaches Liu in Oakland, California, thinks triple-triple combinations are required to win a novice medal this season.

"She went out there and did what we've been practicing all season," Lipetsky said. "You have to be competitive, so we went for the triple-triple. She has two triple-triples, including a triple flip-half loop-triple salchow, planned for the free skate."

Did you know...

In 1994, Congress designated Martin Luther King Jr. Day as a national Day of Service. The MLK Day of Service is the only federal holiday observed as a national day of service. On this day, thousands of people across the United States come together to volunteer in various ways to serve their neighbors and communities. The purpose of this day of service is to empower individuals, strengthen communities, bridge barriers, address social problems, and move our nation closer to Dr. King's vision of a "beloved community." Learn more about the national Day of Service at www.nationalservice.gov/mlkday.

As we are about to bring in the New Year, families across the country will be deciding if this is the year that they will sell their current house and move into their dream home. Many will decide that it is smarter to wait until the spring “buyer’s market” to list their house. In the past, that might have made sense. However, this winter is not like recent years.

The recent jump in mortgage rates has forced buyers off the fence and into the market, resulting in incredibly strong demand RIGHT NOW!! At the same time, inventory levels of homes for sale have dropped dramatically as compared to this time last year.

Here is a chart showing the decrease in inventory levels by category:

Bottom Line

Demand for your home is very strong right now while your competition (other homes for sale) is at a historically low level. If you are thinking of selling in 2017, now may be the time. Call me NOW.