Buying a home has not been this affordable in 20 years due to the housing crisis.
An average family in America with an annual income of $64,000 can afford 72.3 percent of all homes sold in the U.S.
In the first three months of 2009 72.5 percent of homes sold we affordable and in 2008 55 percent of homes sold were affordable.
NAHB Chairman Joe Robson, a homebuilder from Tulsa, Oklahoma said in a statement, "The increase in affordability -- along with the $8,000 federal tax credit for home buyers -- is stimulating demand, particularly among young, first-time buyers."
The NAHB considers a home to be affordable if a family annual income could commit no more than 28 percent of their take home pay towards housing cost.
More houses are becoming affordable due to this years low home prices and low interest rates. The average home value in the U.S decreased 32 percent from its peak in 2006. Mortgage rates have reached a low under 5 percent for a 30-year mortgage.
During the second quarter more than 30 percent of homes sold were sold less than what was originally paid.
Anyone who has purchased a home within the last five years and sold during the second quarter has lost money, according to Stan Humphries, Zillow's vice president in charge of data and analytics.
Many homes are on the market due to foreclosures.
Home prices have become more affordable due to the increased volume of REOs-home repossessed by the bank. In July, 87,000 homes have been repossessed which is triple the amount of July 2007.
According to Brad Geisen, founder of Foreclosure.com, foreclosed homes are sold at a large discount to produce a quick sale.
"The big banks are finally pricing their properties to what people will pay for them," he said. "Foreclosure inventory is now selling at about the same rate it's coming in."
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