Talk Of Green Shoots In Us As Affordability Hits 20Y High
News Posted On: 29 August 2011
The latest data from the Wells Fargo Housing Opportunity Index, in conjunction with the National Association of Home Builders puts housing affordability in the US at a 20 year high. According to the data 75% of housing in the country is now affordable to families earning the national average salary $64,200.
This is great news of course, especially with interest rates at record lows, unfortunately credit is still in a stranglehold allowing only those with impeccable credit histories to even think about buying with a mortgage -- not to mention worries over the economy putting a dampener on sentiment.
Some housing markets are shining through the gloom amidst talk of green shoots. The Youngstown-Warren-Boardman area is currently the most affordable according to the index, with those on the average salary able to afford an incredible 94% of housing in the area. Lakeland-Winter Haven in Florida and Syracuse in New York were also mentioned for having noteworthy affordability.
According to the report, this affordability and signs of recovery are making US property even more attractive. Investors from around the world have been snapping up distressed properties in the US for the past year, with the view of high-yield rentals and the possibility of capital gain when the market recovers.
But for countless others, doubts over the time between now and recovery made investment too risky for their strategies. Rising affordability and green-shoots in some regions is a step in the right direction, now we just need to add easing credit restrictions and we are almost there.
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Article written by Liam Bailey
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