More Homes Affordable Than Perceived

At least for those people still working, the downturn of the economy last year has made homes more affordable now.Now may be a good time to buy, as during the third quarter of 2009, more than 70% of homes sold were considered affordable.According a quarterly report from Wells Fargo and the National Association of Home Builders, making the country’s median income of $64,000 a year, the average U.S. family could afford to buy 70.1% of all homes sold in the United States during the third quarter.Though that is a slight decrease from the previous quarter, when 72.3% were considered affordable, it is a great increase from the third quarter of 2008, when only 56.1% qualified.Last quarter, the affordability saw several buyers enter into the market. Also, recently extended until April 30, buyers wanted to make the most of the $8,000 homebuyer’s tax credit. If a family receiving the metro area’s median income could buy it if they devote no more than 28% of their gross pay toward costs on their house, the National Association of Home Builders deems a home to be affordable.Source: cnnmoney.com