McEnearney Associates Realtors, a Washington area real estate brokerage, has released its regional housing market watch for September and October.
Among the more interesting findings in the report is how much buying power has increased in the Washington area. By looking at what size loan a buyer with a 30-year fixed-rate mortgage could undertake based on a monthly principal and interest payment of $1,000, the firm found that the amount was $220,248 in August, which is $16,243 more than a year ago at this time and $60,849 more than August 2006.
In August 2006, it would have taken a monthly principal and interest payment of $2,509 to purchase a median priced home in the area. Because of today’s low mortgage rates, the monthly payment for a median priced home has fallen to $1,993, a nearly 21 percent drop.