That’s just another way to say “Housing prices are going down!” A point we’ve been making for at least the past year. But the National Assn for Home Builders has noted the phenomenon in a new press release today.
In a nutshell: “National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI)… indicated that a near-record 72.9 percent of all new and existing homes sold in the third quarter of the year were affordable to families earning the national median income of $64,200.”
Different parts of the country were ranked differently, and of course, median income was different as well. Also, we couldn’t find what multiplier the NAHB used to arrive at a price for a home. Personally, we figure from 2.5 times to 3 times your income.
Still, we love their optimistic spin on what has been a horrible housing market for waaaayyyy longer than most of us expected. One likely cause has been refusal of banks to clean their books of non-performing loans by foreclosing on properties. They, too, kept hoping the market would “come back” so the houses could be re-sold, but no dice.