HOI SHOWS IMPROVEMENT
Homeownership may be more attainable to more households in the United States according to a National Association of Home Builders (NAHB)/Well Fargo Housing Opportunity Index (HOI) released today.
The HOI indicated that 74.6 per cent of all new and existing homes sold in the first quarter of 2011 were affordable to families earning the national median income of $64,400. This eclipsed the previous high of 73.9 per cent set during the fourth quarter of 2010 and marked the ninth consecutive quarter that the index has been above 70 per cent. Until 2009, the HOI rarely topped 65 per cent and never reached 70 per cent.
"With interest rates remaining at historically low levels, today's report indicates that homeownership is within reach of more households than it has been for more than two decades," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "While this is good news for consumers, home buyers and builders continue to confront extremely tight credit conditions, and this remains a significant obstacle to many potential home sales."
Syracuse, N.Y., was the most affordable major housing market in the country during the first quarter of the year. In Syracuse, 94.5 per cent of all homes sold were affordable to households earning the area's median family income of $64,300.
Also ranking near the top of the most affordable major metro housing markets were Youngstown-Warren-Boardman, Ohio-Pa.; Indianapolis-Carmel, Ind.; Warren-Troy-Farmington Hills, Mich.; and Toledo, Ohio.
New York-White Plains-Wayne, N.Y.-N.J., led the nation as the least affordable major housing market during the first quarter of 2011. In New York, 24.1 per cent of all homes sold during the quarter were affordable to those earning the area's median income of $65,600.
Other major metro areas near the bottom of the affordability index included San Francisco-San Mateo-Redwood City, Calif.; Los Angeles-Long Beach-Glendale, Calif.; Honolulu; and Santa Ana-Anaheim-Irvine, Calif., respectively.
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