Is it a good time to buy a home or invest in a property? Consider the following, with so many distressed properties on the market, The Housing Affordability Index has jumped to a 20 year high.
This National Association of Home Builders (NAHB) study for the fourth quarter of 2010 reveals that 74 percent of all new and existing homes sold were affordable to families earning the national median income which is $64,400. That record setting level beat the last record high of 72 percent set during the first quarter of 2009. It was also the eighth consecutive quarter that the index has been above 70 percent. Until 2009, the index rarely topped 65 percent.
The report shows that housing affordability at the end of 2010 was at its highest level since the NAHB started computing the index. Though that is great news for home buyers they still face challenges with financing as money is tight and makes it tough for some to take advantage of the low prices.
The conclusion, while the market may have not bottomed out in every corner of our country studies are showing that homes are very affordable and prices are leveling off. It's a great time to buy!
All The Best,
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