Wednesday
October 22, 2014

Best Housing Deals? 5 Most Affordable Housing Markets

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Best Housing Deals? 5 Most Affordable Housing Markets

Nearly 65 percent of new and existing homes sold between the beginning of October and end of December were affordable to families earning the U.S. median income of $64,400, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index. This is largely unchanged from the third quarter index report.

The NAHB/Wells Fargo Housing Opportunity Index shows the most affordable major housing markets in the country is Youngstown-Warren Boardman, Ohio-Pa., where 89.4 percent of all new and existing homes sold in the fourth quarter were affordable to families earning the areas’ median income of $53,900.

The following housing markets topped NAHB’s list as most affordable major markets:

1. Youngstown-Warren Boardman, Ohio-Pa.

2. Harrisburg-Carlisle, Pa.

3. Syracuse, N.Y.

4. Buffalo-Niagara Falls, N.Y.

5. Scranton-Wilkes-Barre, Pa.

The most affordable smaller market was Kokomo, Ind., where 96.3 percent of homes sold in the fourth quarter were affordable to those earning the median income of $60,100.

On the other hand, the index showed that the most expensive major housing market in the country – for the fifth consecutive quarter – was San Francisco-San Mateo-Redwood City, Calif., where 14.1 percent of homes sold in the fourth quarter were affordable to families earning the area’s median income of $101,200.

The National Association of REALTORS® recently released its housing affordability index noting that rising home prices are starting to hamper affordability in some parts of the country, particularly out West.

“The vast majority of home owners have seen significant gains in equity over the past two years, which is helping the economy through increased consumer spending,” says Lawrence Yun, NAR’s chief economist. “At the same time, home prices have been rising faser than incomes, while mortgage interest rates are above the record lows of a year ago. This is beginning to hamper housing affordability.”

Source: National Association of Home Builders

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NAR’s Housing Affordability Index