Housing Is Very Affordable Right Now
With lower than ever interest rates, and home prices declining. Homes are about as affordable as they’ve ever been. Families that make the median income level can afford 72.5 percent of the homes for sale. The thing that confuses me though, is that even though home prices are down, and interest rates are down, the affordability level is less than it was a year ago. This probably reflects a decrease in average incomes for American Families. Here are some details from the Inman News.
The share of homes that families making the national median income could afford to buy remained above 70 percent for the sixth quarter in a row, according to the latest National Association of Home Builders/Wells Fargo Housing Opportunity Index HOI.Nationally, the HOI was at 72.3 percent in the second quarter, unchanged from the same time period last year and close to the index’s record-high 72.5 percent, set in first-quarter 2009.
Leave a Reply