75% of all American homes are “affordable” to median-income households…
American housing affordability hit a new record high in the first quarter, surpassing the previous high set in fourth-quarter 2010, according to an index released by the National Association of Home Builders (NAHB) and mortgage giant Wells Fargo.
The Housing Opportunity Index (similar but not the same as NAR’s Home Affordability Index) found that 74.6% of new and existing homes sold in the first quarter were affordable to families earning at least the national median income of $64,400. That’s up from 73.9% in the fourth quarter of 2010, and is the highest level ever recorded since the index was created over twenty years ago.
“With interest rates remaining at historically low levels, today’s report indicates that home-ownership is within reach of more households than it has been for more than two decades,” said Bob Nielsen, chairman of the NAHB. “While this is good news for consumers, homebuyers and builders continue to confront extremely tight credit conditions, and this remains a significant obstacle to many potential home sales.”
Of course this index is more telling nationally and we need to do more investigation into our local market to see what our affordability looks like. Lucky for us the NAR’s Housing Affordability Index breaks it down locally and our local Sacramento-Roseville market is also more affordable, when compared against the local median-income, than at any time in history too!
Roseville Loan Guy