By Andy Warren, president of Maracay Homes | East Valley Tribune
Despite rising housing prices, home ownership remains within reach for the majority of Americans, according to information released last month by the National Association of Home Builders.
The first National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) report of the year indicates 73.7 percent of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $64,400. The number is down slightly from the 74.9 percent of homes sold that were affordable to median-income earners at the end of 2012.
NAHB Chairman Rick Judson, a home builder from Charlotte, N.C., said favorable mortgage rates and prices over the last four years contributed heavily to the affordability factor for buyers. Even though builders have endured rising labor, land and material costs, affordability has held steady since the end of 2008, he said.
NAHB Chief Economist David Crowe summed up the situation this way, saying: “The bottom line is that for consumers who can qualify for a mortgage at today’s attractive rates, the majority of homes being sold remain within their grasp in markets nationwide.”
Also: New homes still getting bigger
If you’d like to discuss real estate matters, contact Rose Law Group founder Jordan Rose, jrose@roselawgroup.com
