Housing affordability hits highest level in years

For the seventh straight quarter, housing affordability hovered around its highest level in decades, HousingPredictor.com reported. The level of affordability is based on the National Association of Home Builders-Wells Fargo index.

In the third quarter, 71.1 percent of all homes sold were affordable for families earning the median income of $64,400. The record high was set in the first quarter of 2009, when it hit 72.5 percent.

“With interest rates remaining at historically low levels, and house prices starting to stabilize, homeownership is within reach of more households than it has been for almost 20 years,” said National Association of Homebuilders chairman Bob Jones. “While these favorable conditions are beginning to draw home buyers back into the market, builders continue to have major problems in obtaining credit for new-home construction.”

Indianapolis was the most affordable major housing market, where 93.3 percent were considered affordable, while the New York-White Plains market was the worst, with only 22.6 percent of homes labeled as affordable.