Jude's Real Estate Rumblings

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Falling home prices: The silver lining

An article from CNNMoney.com, reports that according to a new report released this week, home prices continue to tumble across the country, making homes more affordable in most U.S. cities.  A quarterly report released by the National Association of Home Builders shows nationally, 55% of homes sold from April through June were affordable to families earning the U.S. median income of $61,500.  That is up from 53.8% in the first quarter of 2008, and the most affordable home prices have been since the second quarter of 2004.  Median home prices dropped to $215,000 in the quarter, which are about 10% below year-ago levels of $240,000.  Gopal Ahluwalia, an NAHB economist said, "This is definitely positive news, because more people can afford to buy a home.  Still, actual sales haven't picked up, because people are waiting on the sidelines as they fear home prices will continue to decline." 
http://money.cnn.com/2008/08/19/real_estate/most_affordable_housing/index.htm?postversion=2008081916

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