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Real Estate: Housing Affordability Close to Record High

Posted by Breckenridge Associates Real Estate on Tuesday, November 24th, 2009 at 9:52am.

The Housing Opportunity Index (HOI), an indexing series created by the National Association of Home Builders/Wells Fargo and used first used 18 years ago, indicates that the third quarter of 2009 is near its highest level for the third consecutive quarter since it's first series was created in 1991.

Nationwide housing affordability, affordable interest rates and low pricing are all factors. The report concludes that 70.1% of all new and existing homes sold July-September, 2009, were affordable to families earning the national median income of $64,000. This is down slightly from a near record in the second quarter and up from 56.1% in the third quarter of last year.

With the tax credit extended and expanded to appeal to a wider group of eligible home buyers, we hope to continue to see a sales trend continue to grow. Interest rates are now lower than the last quarter and the tax credit encourages more parties to enter into the the market, stimulating home sales, stabilizing prices and helping to cut inventory.

The most affordable major housing market is Indianapolis. Also near the top of the list for metro markets were Youngstown-Warren-Boardman, Ohio-Pa., and three Michigan metropolitan areas, Detroit-Livonia-Dearborn; Warren-Troy-Farmington Hills; and Grand Rapids-Wyoming.

Source: RIS Media Article - Nov. 23, 2009

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