It's a Good Sign That Housing Is Less Affordable

Washington, DC, Aug. 14, 2012 -- Homes became a little less affordable in the second quarter thanks to rising prices, according to the National Association of Home Builders and Wells Fargo.

Nearly 74% of the new and existing homes sold in the quarter were affordable to families who earn the national median income of $65,000.

That's down from 77.5% in the first quarter, but still a very high level of affordability based on history.

Median home prices were up in 92% of the markets surveyed, while median income didn't change.

NAHB chairman Barry Rutenberg said the decline in affordability was a positive sign for the market because it signals that the housing recovery is starting to take root.