Homes More Affordable for 3rd Straight Quarter
It’s no surprise-with excessive inventory and an increased number of foreclosures-homes became more affordable across the country for the third consecutive quarter, according to the recently released National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI).
From April to June, the national HOI rose to 55, meaning 55 percent of all new and existing homes sold were affordable to families earning the national median income of $61,500. This figure matched the highest-level HOI recorded in the last three years. According to the report, the median home sales price on a national scale last quarter was $215,000, about 10 percent lower than last year.
Indianapolis, Indiana was deemed the most affordable major U.S. housing market for the second quarter of 2008. Other cities at the top of the list of affordable markets include Youngstown, Ohio; Detroit, Michigan; and Farmington Hills, Michigan.
New York was the nation’s least affordable major housing market, marking the first time a city outside of California received this designation since the HOI’s inception in 1991. Other major metro areas at the least affordable end of the HOI chart included San Francisco and Los Angeles, California; Miami, Florida; and Nassau-Suffolk, New York.
Source: Bloomberg.com; Carrie Bay | 08.21.08
REAL Trends Comment: It can’t be any surprise that as affordability improves so too will housing sales. It was the bust in affordability that caused the downturn and it will be the return of price stability and affordability that will return the market to health. Realty leadership would be well advised to review their own firms listing prices and focus on getting sellers to market their homes at today’s prices not those of two to three years ago or take them off the market.