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NAHB: Increase noted for housing affordability

Posted on Friday, February 20, 2015 at 7:54:24 AM

The number of affordable homes across the country is on the upswing, with the National Association of Home Builders reporting that lower residential financing rates and cheaper home prices have helped median-income buyers find viable real estate.

The NAHB/Wells Fargo Housing Opportunity Index found that 62.8 percent of all new and existing homes were within the price range for buyers earning an income of $63,900 between Oct. 1, 2014 and Jan. 1, 2015. Overall, the U.S. median home price slipped from $220,800 in the third quarter of 2014 to $215,000 by the fourth quarter.

"Affordable home prices, historically low mortgage rates and an improving job market will release pent-up demand and help keep the housing market moving forward in the year ahead," explained NAHB chief economist David Crowe.

The increase in affordability comes at a good time for the U.S. housing market. According to Zillow, rental affordability is on an opposite trend compared to housing, with median monthly rents climbing in January.

On the other hand, the NAHB reported that some of the most cost-effective markets in the U.S. were Syracuse, New York; Akron, Ohio and Dayton, Ohio.