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.
Most Affordable Major Housing Markets
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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