Tags: Homes | unaffordable | average | Americans

NAHB/Wells Fargo: Homes Turning Unaffordable for Average Americans

By    |   Tuesday, 14 Aug 2012 01:57 PM

The incipient rebound in the housing market may be good for the economy as a whole, but it’s not good for the average American looking to buy a new home.

Almost 74 percent of all new and existing homes sold in the United States during the second quarter were affordable for families with the median national income of $65,000, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index.

That may sound pretty good, but it’s down from 77.5 percent in the second quarter.

Editor's Note: The Truth About the Economy — Government Documents Lead to Eerie Conclusion

Median home prices gained in 92 percent of the markets polled during the second quarter, while median income was unchanged, according to CNNMoney.

To be sure, the price increase is welcome news for those trying to sell their homes. And not surprisingly, the NAHB sought to put a positive spin on the numbers.

“[It's] another signal that the housing recovery is starting to take root, and it lends needed confidence to prospective buyers and sellers who have been reluctant to move forward in the current marketplace,” said NAHB Chairman Barry Rutenberg.

According to the latest Standard & Poor’s/Case-Shiller Index, home prices gained 0.9 percent in May from April.

Experts hold mixed views about the outlook for housing from here.

“The turnaround in home prices feels pretty broad,” Celia Chen, a housing economist at Moody’s Analytics, told Bloomberg. “[But] there are still risks that home prices will dip a little more before they start appreciating with any consistency.”

Editor's Note: The Truth About the Economy — Government Documents Lead to Eerie Conclusion

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