Can you afford to buy a new home now, and if so, can you get financing? Take a look at the following article from the National Association of Home Builders, posted on February 21, 2011
Housing Affordability at Record Levels, Though Tight Financing Constrains Sales
Nationwide housing affordability measured by the NAHB/Wells Fargo Housing Opportunity Index (HOl) during the fourth quarter of 2010 rose to its highest level ever in the 20-year history of the index.
The HOI indicated that 73.9% of all new and existing homes sold in the fourth quarter of 2010 were affordable to families earning the national median income of $64,400. This surpassed the previous high of 72.5% set during the first quarter of 2009 and marked the eighth consecutive quarter that the index has been above 70%. Until 2009, the HOl rarely topped 65% and never reached 70%.
"The report shows that housing affordability at the end of 2010 was at its highest level since we started computing the HOI," said NAHB Chairman Bob Nielsen. "However, while this is good news for consumers, both home buyers and builders continue to confront extremely tight credit conditions, and this remains a significant obstacle to many potential home sales."
Indianapolis-Carmel, Ind., was the most affordable major housing market in the country for the second consecutive quarter, after relinquishing for a quarter the top spot it had held for five years. In
Also ranking at the top of the most affordable major metro housing markets were:
Among smaller housing markets, the most affordable was
During last year's fourth quarter, New York-White Plains-Wayne, N.Y.-N.J., again led the nation as the least affordable major housing market. In
The other major metro areas at the bottom of the affordability index included:
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