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New Homes and Foreclosure Residential Properties Remain Affordable

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By : John Cutts    99 or more times read
The prices of houses, including newly built and foreclosure residential properties, remain affordable for most areas of the U.S. for the 2010 third quarter. This marks the seventh quarter in a row that homes have maintained their affordability based on data presented by the National Association of Home Builders and the Wells Fargo Housing Opportunity Index (HOI).

With low-priced Buffalo foreclosures and affordable housing units in most of its local areas, New York was able to top the list in the second quarter of 2010, with Syracuse ranked number one in terms of housing affordability. However, the recent HOI data showed that Syracuse, New York has been displaced by Indianapolis-Carmel in Indiana.

Although foreclosed homes in New York are relatively affordable and some areas of the state made it to the list of areas with the most affordable homes, other regions of New York are the exact opposite, with some counties getting included in the list of areas with the least affordable residential property market for the 2010 third quarter.

The latest report showed that Wayne-White Plains-New York, New York-New Jersey topped the list of areas with houses that are least affordable, with both newly built dwellings and foreclosure residential properties remaining out of reach for most American home buyers. The July-September 2010 period marks the 10th quarter in a row that this area has topped the list.

Around 22.6% of newly built houses and foreclosed homes in the state sold during the 2010 third quarter were deemed affordable for households whose earnings are within the $65,600 median income of the region. In comparison, 93.3% of residential properties sold in Indianapolis-Carmel were considered affordable to buyers who have household median earnings of $68,700.

Overall, the HOI data revealed that around 72.1% of houses sold during the July-September 2010 period all around he U.S. were within reach of households that have median incomes of $64,400. The latest quarter's percentage is slightly lower than the 72.5% recorded in the 2009 first quarter.

According to housing market analysts, low interest rates are part of the reason for the affordability of newly built and existing homes in the U.S., including foreclosure residential properties. They further added that such developments are likely to encourage more home buyers in the coming months.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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