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Last week, I conducted a training for first time home buyers, in Gwinnett county.  As always it was packed with information and very practical tips.  Yet, one of the stats that we gave got the most “Aha” moments from the crowd.  You know the one, where a light bulb goes off over your head and you almost audibly say, “Aha, I DO really need to buy a home now”.

And that is a big “Aha”, since fear is all we hear about associated with the housing market when we tune in any news outlet. The stat that got all that attention:  The National Association of Realtors Housing Affordability Index, graphically showing that home affordability is at all-time highs.  And that makes now the perfect time to buy a home anywhere around metro Atlanta, but primarily optimal for first time home buyers. Housing affordability is measured by three benchmarks:

1. The median home price for the area – and housing prices are down now.
2. The median income for the area – and incomes have been generally stable.
3. Mortgage interest rates to purchase that home and finance it – which are just off their 50 year lows.

We are now at all-time high’s in housing affordability.  Low home prices, low mortgage rates and stable to high incomes make for a perfect trifecta.  Now you want the icing on the cake?   The Federal Government will give you$8000 for buying your first home, so long as you close on the home by November 30, 2009.  Does that make the home more affordable?  Well, yes.

Oh, and the affordability indix chart above is based on the first time home buyer putting 10% down payment.  If buyers in Atlanta metro take out an FHA mortgage, it only requires a 3.5% down payment, and the monthly mortgage insurance is usually more affordable.  That makes FHA loans my normal preference for first time home buyers.