Most local homes affordable as index hits all-time high

Nationwide housing affordability, as measured by the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), rose to a record level during the fourth quarter of 2011, but prospective homebuyers continue to feel the constraints of tighter credit standards and a soft economy.

HOI data reveals that 75.9 percent of all new and existing homes sold in the fourth quarter were affordable to families earning the national median income of $64,200, the highest percentage recorded in the 20-year history of the index.

“While today’s report indicates that homeownership is within reach of more households than it has been for more than two decades, overly restrictive lending conditions confronting home buyers and builders remain significant obstacles to many potential homes sales, even with interest rates at historically low levels,” said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB).

Seattle-Bellevue-Everett was grouped into one market and showed an affordability ratio of 71.4 percent with a higher than expected median household income of $86,800.