Buying a home is now more affordable than it has been in the last twenty years.
That is, according to this CNN article. Due to declines in home prices and nearly record-low mortgage rates, the National Association of Home Builders/Wells Fargo Housing Opportunity Index now registers a record level of affordability.
According to the index, 75.9% of all new and existing homes sold during the three months ended Dec. 31 could have been comfortably purchased by families earning the national median income of $64,200.
That was the highest percentage recorded in the 20-year history of the index, and a sharp increase from just three months earlier when 72.9% of all homes sold were considered affordable.
The National Association of Realtors reported that in January, home prices fell to their lowest point in more than a decade, which has helped to lift the pace of home sales. The median home price in January fell 2% from December to $154,700. That's the lowest since November 2001, before the run-up in home prices that eventually crashed the market.
The pace of sales rose to the highest level since May of 2010. The seasonally-adjusted annual sales pace of 4.57 million homes was up a bit from the revised 4.38 million in December. The last time homes sold at that pace, buyers were rushing in order to qualify for the $8,000 homebuyer's tax credit as it was about to expire.
Unfortunately, despite the affordability and apparent signs of recovery, most Americans are having trouble buying a home. The main reason is that potential home buyers are finding it extremely difficult to qualify for mortgages due to tightened lending standards. Borrowing troubles are even...
Be the first to know when new listings hit the market.Sign Up Now
Pricing trends, average days on market, and more, updated every day.View All Stats
Our professional analysis includes data on recent sales and current market trends.Find Out Now