Real estate is the most affordable it’s been in nearly a generation, although the historic nature of its affordability hasn’t sparked a stampede of buyers eager to jump into the market and take advantage of low prices.
Fears for the future, economic and employment worries, and persistently tight credit are cited as reasons for the sluggish housing recovery.
While there are still isolated pockets where real estate prices remain very high, most markets — in large cities and small — have prices within reach of the average family. The National Association of Home Builders/Wells Fargo Housing Opportunity Index, long considered an excellent gauge of housing affordability, showed that real estate was affordable to a near-record 72.3% of all homebuyers in the second quarter — just below the all-time record of 72.5% during the first quarter of 2009.
Among large markets, Syracuse, NY led the nation in housing affordability, with a 97.2% affordability rate. Springfield, Ohio topped the smaller market affordability list, with housing being affordable to a still-impressive 96.6 percent of homebuyers.
Even though housing is extremely affordable, buyers aren’t yet flocking to the market in hopes of snapping up real estate bargains. Fears for the future, economic and employment worries, and persistently tight credit are cited as reasons for the sluggish housing recovery.
The lure of affordable housing may be beginning to entice would-be homebuyers to re-enter the housing market. While the uptick in real estate activity is slow, the pace is expected to pick up in the coming months as economic fears are quelled and buyers begin taking advantage of low prices and very low interest rates.
For more: http://newsletter.defaultresearch.com/news/2010/08#1
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