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U.S. Housing Affordability Trends

U.S. Housing Affordability Trends The Number of Existing Single-Family Homes Sold Nationwide I Existing Single-Family Homes Sold in 2010 4,566,000 5,000,000 4,939,000 4,000,000 4,350,000 3,970,000 2007 2008 2009 2010 2010 Monthly Estimates While the average nationwide sales of the existing single family homes has declined, as of August 2010, the yearly home sale estimates are trending in the right direction. From August to September 2010, "Single-family home sales increased 10 percent to a seasonally adjusted annual rate of 3.97 million" -REALTOR.ORG Existing Single-Family Home Median Prices vs. Number of Units Sold by Region Median Prices of Single-Family Homes Existing Single-Family Home Sales 2009 2010 2009 2010 NORTHEAST MIDWEST SOUTH $139,200 $154,400 $240,000 $155,600 $245,700 710,000 $146,300 1,180,000 1,880,000 570,000 870,000 1,570,000 WEST $219,300 $228,900 960,000 1,160,000 The Midwest experienced the deepest plunge in existing single-family home sales with a 26% yearly decline. Nationwide, while existing single-family home sales decreased by 19% year-over-year, median prices of units showed some signs of stabilization with only a 1.9% yearly drop. Median Prices of Existing Single-Family Homes $240,000 $208,600 $210,000 $193,000 $175,900 $180,000 $172,600 $150,000 $120,000 $90,000 2007 2008 2009 2010 Since 2007, housing affordability has improved due to record-low fixed mortgage interest rates, coupled with a slight drop in median household income. 2007 2007 2007 $208,600 $61,173 6.34% 2010 2010 $60,498 $172,600 2010 5.91% Mortgage interest rates' dropped The median The median single-family home family income decreased by only price dropped by favorably by 7% 17% from 2007. 1% from 2007. from 2007. Housing Affordability Index* 171.3 168.1 137.4 The H.A.I. measures median 115.3 household income relative to the income needed to purchase a median-priced single-family house. A higher index number indicates that more can afford to purchase a home. 2007 2008 2009 2010 Trends show that affordability has gone up significantly over the past 3 years, only slightly down this year. *Home Affordability Index = (Median Family Income / Qualifying Income) x 100 1 Estimated annualized figures as of September 2010 Based on annualized September 2010 and 2009 figures" 30 year fixed mortgage rate Jan - Oct average * Average for January - August 2010 credit sesame Sources: Realtor.org and FreddyMac.com www.creditsesame.com

U.S. Housing Affordability Trends

shared by aleks on May 23
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Since 2007, housing affordability has improved due to record-low fixed mortgage interest rates, coupled with a slight drop in median household income.

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Economy
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