Majority Of Homes For Sale Still Affordable

A family earning the U.S. median income of $63,900 could afford 62.6 percent of the new and existing homes sold during the second quarter of this year, according to the most recent National Association of Home Builders Housing Opportunity Index. Homes sold in the first quarter of this year were affordable to 65.5 percent of median-income earners. Despite the dip, affordability levels continue to be high by historical standards. Kevin Kelly, NAHB’s chairman, said now continues to be a great opportunity to buy a home, with mortgage rates near historic lows and job growth strengthening. In fact, the average mortgage interest rate decreased during the second quarter. Prices, on the other hand, rose. Nationally, the median home price increased from $195,000 in the first quarter to $214,000 in the second quarter. According to the NAHB’s chief economist, David Crowe, affordability levels are now where they were before the mid-2000s housing boom, reflecting a slow, steady climb back from the lows experienced following the financial crisis and recession. More here.

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