Home affordability declined in the third quarter of 2013, the result of the year’s steady rise in home prices and escalating mortgage rates. The NAHB/Wells Fargo Housing Opportunity Index (HOI) reported that for families earning the national median of $64,400 just under 65% of new and existing houses sold were affordable. The third quarter decline in affordability is a sharp drop from the previous quarter and is the biggest dip since 2004. The costs of building materials, lots, and labor are increasing as well. The most affordable housing remains in Indianapolis-Carmel, Ind., and Syracuse, N.Y. and the homes in California consistently maintain all five of the least affordable home markets.
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