ThernNAHB/Wells Fargo Housing Opportunity Index (HOI) showed that 69.3rnpercent of new and existing homes sold during the second quarter ofrn2013 were affordable to families earning the median national incomernof $64,400. In the first quarter of the year the index indicatedrnthat 73.7 percent of homes were affordable using that measure. Thernsecond quarter marked the first time had HOI fallen below below 70rnpercent since late 2008.</p

Forrnthe fourth consecutive quarter Ogden-Clearfield, Utah, was rated thernnation’s most affordable major housing market with 92.8 percent ofrnall new and existing homes sold being affordable to families earningrnthe area’s median income of $70,800. This was down, however, fromrnthe 93.4 percent affordability measure posted by Ogden-Clearfield inrnthe previous quarter. The most affordable small market wasrnUtica-Rome, New York where just over 97 percent of new and existingrnhomes were affordable to families earning that area’s median incomernof $63,800. </p

“Housing affordability has been hovering near historic highs</bfor the past several years, largely due to exceptionally favorablernmortgage rates and low prices during the recession," observed NAHBrnChairman Rick Judson. "Now that markets across the country arernrecovering, home values are strengthening at the same time that therncost of building homes is rising due to tightened supplies ofrnbuilding materials, developable lots and labor."    rn
 
“Rising home prices signal the improving health inrnhousing markets, and the median price of all new and existing U.S.rnhomes sold in this year’s second quarter, at $202,000, was wellrnahead of the second quarter 2012 median price of $185,000,”rnobserved NAHB Chief Economist David Crowe. “Together with risingrnmortgage rates, this contributed to affordability slipping to thernlowest level in more than four years. Such movement would be lessrnconcerning were it not for ongoing discussions regarding potentialrnchanges to the mortgage interest deduction and federal support forrnthe secondary mortgage market, both of which play enormous roles inrnkeeping homeownership affordable.”
 
Other major U.S.rnhousing markets at the top of the affordability chart in the secondrnquarter included Indianapolis-Carmel, Indiana; Harrisburg-Carlisle,rnPennsylvania; and Youngstown-Warren-Boardman, Ohio-Pennsylvania. Other most affordable small markets were Kokomo, Indiana.;rnCumberland, Maryland; and Vineland-Millville-Bridgeton, New Jersey. </p