Housing becoming more affordable

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.


About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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