Third Quarter Report Shows Record-High Housing Affordability
November 20, 2009 - In a report released by the National Association of Home Builders (NAHB), 70% of all new and existing homes purchased throughout the third quarter were affordable to families with a median income of $64,000. This new figure is a substantial jump from the 56.1% that was documented in the third quarter of 2008. Strengthened by current housing prices and reduced interest rates, nationwide affordability has maintained the highest consecutive quarters since nearly two decades ago.
"With interest rates now lower than last quarter, the tax credit will encourage even more homebuyers to enter the market and help stabilize housing and the economy by creating new jobs, stimulating home sale, reducing foreclosures, cutting excess inventories and stabilizing home prices," NAHB chairman, Joe Robson, reported.
The Midwest ranks highest in affordability, where even despite high wages, home prices have remained low due to slow population growth. Over 17 successive quarters, Indianapolis continues to remain the most affordable major housing market in the country where 95% of all homes were deemed affordable.