Home Affordability Peaked Last Quarter; Purchasing Power Sinks 10%
By David Kosmecki
(American Pacific Mortgage)
Home affordability reached an all-time high in 2010′s last quarter. Unfortunately for home buyers in Minnesota , it's been a different story since, however. As mortgage rates cratered, and with home values soft, the Home Opportunity Index reached its highest level in 20 years. The index is published by the National Association of Home Builders. Close to 74 percent of the new and existing homes sold between October-December 2010 were affordable to families earning the national median income of $64,400. It's the 8th straight quarter in which the Home Affordability Index surpassed 70 percent. Prior to 2009, the HOI rarely topped 65 percent. That said, though, as with everything in real estate, home affordability is a local event. For example, take the Elkhart/Goshen area of northern Indi...