WASHINGTON – Indianapolis, IN, maintained its standing as the most affordable major U.S. housing market for a sixth consecutive time in the final quarter of 2006, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.

"Today’s HOI reading indicates that 41.6% of new and existing homes that were sold during the fourth quarter of 2006 were affordable to families earning the national median income of $59,600" said NAHB President Brian Catalde. "This is slightly better than the 40.4% of homes that were affordable to median-income earners in the third quarter and mostly due to more favorable mortgage rates near the end of the year."

Compared to the national average, 89% of homes sold in Indianapolis in the fourth quarter of 2006 were affordable to the families earning the area’s media household income of $65,100. The median sales price of all homes sold in Indianapolis during that time was $113,000, which is down from the $122,000 median sales price in the previous quarter.

On the flip side, the greater Los Angeles area ranked as the nation’s least-affordable major housing market for a ninth consecutive quarter. There, just 2% of new and existing homes sold during the fourth     quarter were affordable to those earning the area’s median family income of $56,200. The median sales price of all homes sold in the area during the fourth quarter was $525,000.

Three other California metro areas also made the bottom-five list.

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Most Affordable Major Housing Markets

1. Indianapolis

2. Youngstown-Warren-Boardman, OH-PA

3. Detroit-Livonia-Dearborn, MI

4. Toledo, OH

5. Buffalo-Niagara Falls, NY

 

Least Affordable Major Housing Markets

1. Los Angeles-Long Beach-Glendale, CA

2..    Santa Ana-Anaheim-Irvine, CA

3.    San Diego-Carlsbad-San Marcos, CA

4.     New York-White Plains-Wayne, NY-NJ

5.      Modesto, CA

 

Source: NAHB/Wells Fargo

 

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