Despite all the doom-and-gloom reports on the residential real estate market, there are some bright spots. In several markets, housing has become surprisingly affordable to families earning a median household income of $61,500. And there’s more good news. Mortgage rates are again nearing the record lows of a few years ago; and family incomes jumped an average of a $2,500 between 2007 and 2008.
What are some of the markets most strongly impacted by this trend?
Indianapolis, IN – The largest affordable cities – Indianapolis, for example — tend to be in the Midwest. More than 90 percent of all Indianapolis households have sufficient incomes to buy a median-priced $125,000 home. During the first quarter of 2008, Indy ranked as the most affordable major U.S. housing market for the 11th consecutive quarter.
Stockton, CA: — The average single-family home price fell 35 percent to $230,800 in the first quarter of 2008, compared with $357,800 just two years previously.
Kokomo, IN: — Among smaller metro markets, Kokomo ranked well in terms of housing affordability during 2008′s first quarter. A median-priced home in Kokomo is about $147,000.
Grand Rapids, MI: — Approximately 88.7 percent of homes sold were affordable, a 4.2 percent change from 2007. A median-priced house in Grand Rapids is currently $132,100.
Youngstown, OH: — In this small city with a population of 82,000, the median sales price dropped 13.5 percent to $67,700 in just one year.