Friday, May 18, 2012


Home buying at most affordable level in decades

@CNNMoney May 17, 2012: 12:52 PM ET
NEW YORK (CNNMoney) -- Buying a home has reached its most affordable level in more than two decades.

Nearly 78% of homes sold during the first quarter were affordable to those earning the national median income of $65,000, according to a report released Thursday by the National Association of Home Builders and Wells Fargo. The reason: Home prices nationwide are off about 36% from their peak. Median income has risen by about 10%. And mortgage rates are below 4%. There is one catch for home buyers, however: Mortgage availability. "Homes in this year's first quarter were more affordable than they have been at any time in more than 20 years, yet many potential sales are not happening," said Barry Rutenberg, NAHB's chairman and a homebuilder in Gainesville, Fla. He said that's mainly due to overly tight lending conditions.

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