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Homes becoming more affordable

Think of this as the upside to falling home prices.

One study that compares housing costs to local incomes says homes are more accessible to the average family than at any time in the past five years.

Roughly 62% of all new and existing homes that were sold in the fourth quarter could be purchased by families earning the national median income of $61,500, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.

That’s up from the 56.1% of homes that were deemed affordable in the previous quarter. In 2007, only 46.6% of homes were affordable.

Indianapolis, which often leads this survey, was the most affordable large metro housing market during the fourth quarter. Slightly more than 93% of all homes sold in Indianapolis were affordable to households earning the local median family income, $65,100.

New York-White Plains-Wayne, N.Y.-N.J. was again ranked as the country’s least affordable major housing market. Just under 14% of all homes sold during the fourth quarter were affordable for families earning the $63,000 median income.

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  1. Bernz Jayma P. said:
    on March 13th at 04:59 pm

    I’ve looked at a couple of homes in Las Vegas and was really surprised by what you can actually get out of your money out there. I knew they have great deals but but didn’t think that home values went down that big. One of them was sold in 2006 (2 years old) for $399,000 and now selling for $214,000.