Everyone always wants to hear some good news that can be found with this troubled economy. The National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) just completed a study that nationwide housing affordability has reached its highest level in five years at the end of 2008.
Of all the homes that were sold in the last quarter of 2008, 62.4% of them were affordable to families that were earning the national median income of $61,50o a year. In the third quarter of 2008, only 56.1% of homes met that criteria, and in the final quarter of 2007, that percentage was only 46.6%.
So what’s causing this change? Obviously, lower home prices to get homes sold more quickly among the massive inventory as well as decreased mortgage interest rates. National Association of Home Builders Chairman Joe Robson said that he hopes the new tax credit and government legislation will help incent more buyers to purchase homes.
Indianapolis, Indiana came in as the most affordable city in the country. It’s actually been first on the list for the past 14 years. Other areas were: Warren-Troy-Farmington Hills, Michigan; Youngstown-Warren-Boardman, Ohio-Pennsylvania.; Detroit-Livonia-Dearborn, Michigan; and Grand Rapids-Wyoming, Michigan.
At the bottom of the list (the least affordable) was New York-White Plains-Wayne, New York-New Jersey, where just under 14 percent of all homes sold during the period were affordable to those earning the median income of $63,000. Other areas included San Francisco, California; Nassau-Suffolk, New York; Los Angeles-Long Beach-Glendale, California; and Miami, Florida.
For the Chicago-Joliet-Naperville area, 56.8% of homes in the final quarter of 2008 were affordable. We ranked 164th nationally.
Are you ready to make that home purchase in the Chicagoland area? Please visit me online for assistance.