May
20

Nationwide Housing Affordability Hits Record High

May 20, 2012

family in home pictureAccording to the National Association of Home Builders (NAHB), nationwide housing affordability has a reached a new record high for a second consecutive quarter in the first three months of this year. The National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) shows that 77.5 percent of all new and existing homes that were sold in this year’s first quarter were affordable to families earning the national median income of $65,000.

This figure beats the 75.9 percent of homes sold to median-income earners in the final quarter of 2011. Main reasons for the housing affordability is due to home prices being 36 percent down from their peak, the median income has risen about 10 percent and the record low mortgage rates available. However, one thing that is difficult to obtain is credit. Tight lending standards are still a huge hinderance for potential home owners. Since the subprime mortgage crisis, lenders have been extremely hesitant in who they offer assistance to.

“Homes in this year’s first quarter were more affordable than they have been at any time in more than 20 years, yet many potential sales are not happening because of overly tight lending conditions that are keeping hardworking families from obtaining a suitable mortgage,” said Barry Rutenberg, chairman of the National Association of Home Builders. “Without this significant hurdle, the housing and economic recovery could be proceeding at a much stronger pace.”

Indianapolis is host to the most affordable housing with 95 percent of homes sold during the quarter being affordable to households earning the area’s median family income of $66,900.

According to Area Vibes, the median family income in Chicago, which did not make, is $46,350.

What are the main problems preventing potential Chicago home buyers from buying property? Feel free to leave us your thoughts and comments.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.
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