Homeownership still very affordable in third quarter
Posted on Friday, November 16, 2012 at 4:26:06 PM
Although property values increased significantly so far this year, housing affordability is still very high throughout much of the country.
During the third quarter, roughly 74.1 percent of properties sold were affordable to households making the median national income of $65,000, according to a report from the National Association of Home Builders. This was an improvement from 73.8 percent in the previous three-month period.
"The latest housing affordability data is good news on two fronts, because it shows that the share of homes affordable to median-income earners has risen even as home prices have continued to gradually recover from their recession lows," said NAHB chairman Barry Rutenberg.
The most affordable housing market was in Ogden-Clearfield, Utah, where 93.2 percent of residents could afford homes in the area, the report said. In contrast, New York City and the surrounding area maintained its title as most expensive housing market in the country.
Affordable residential lending is a major contributor to the recent trend. In fact, according to Freddie Mac, fixed mortgage rates reached new all-time lows during the week ending November 15. However, prospective borrowers should remember that the mortgage rate they receive is heavily dependent on their financial situation.