Prices, Tax Breaks Make Housing Widely Affordable

Washington, DC, Aug. 20, 2009--Bolstered by affordable interest rates and low prices, nationwide housing affordability during the second quarter continued to hover near its highest level since the series began 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index released today.
 
The index showed that 72.3 percent of all new and existing homes sold in the second quarter were affordable to families earning the national median income of $64,000, down only slightly from the record-high 72.5 percent during the previous quarter and up from 55.0 percent during the second quarter of 2008.
 
“The increase in affordability — along with the $8,000 federal tax credit for home buyers — is stimulating demand, particularly among young, first-time buyers,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla.

Robson noted that the tax credit, which expires on Nov. 30, is currently limited to just buyers purchasing their first home. The group is urging Congress to extend and expand the program.