Housing Remains Highly Affordable for Sixth Consecutive Quarter

Bolstered by favorable interest rates and low house prices, housing affordability remained near its highest level nationwide for the sixth consecutive month since the series was first compiled nearly two decades ago, according to the National Association of Home Builders.

The HOI (housing opportunity index) indicated that 72.3% of all new and existing homes sold in the second quarter of 2010 were affordable to families earning the national median income of $64,400.

Homeownership is within reach of more households than it has been for almost a generation, Interest rates continue to hover at historic low levels, the economy is beginning to rebound and with house prices starting to stabilize, conditions are beginning to draw home buyers back into the market, which is a positive step on the path to recovery.

Syracuse, N.Y., was the most affordable major housing market in the country.
Among smaller housing markets, the most affordable was Springfield, Ohio, where 96.6% of homes sold during the second quarter of 2010 were affordable to families earning a median-income of $56,800.

New York-White Plains-Wayne, N.Y.-N.J., continued to lead the nation as its least affordable major housing market during the second quarter of 2010.

You’ll be interested to know that the other major metro areas near the bottom of the affordability scale included San Francisco-San Mateo-Redwood City; Santa Ana-Anaheim-Irvine, Los Angeles-Long Beach-Glendale, Calif.; and Honolulu, all metro areas that have lingered among the bottom rankings for several quarters.

San Luis Obispo-Paso Robles, Calif., was the least affordable of the smaller metro housing markets in the country during the second quarter. Others near the bottom included our very own Santa Cruz-Watsonville, Calif.; Ocean City, N.J; Santa Barbara-Santa Maria-Goleta, Calif.; and Napa, Calif.

So let’s take a look at some affordable homes in this neck of the woods.. .

55 LA RANCHERIA ROAD, Carmel Valley MLS #: 81017814 $995,000 Beds: 4 Baths: 3 (2/1) 
Price reduction...MOTIVATED SELLER...Newly constructed home conveniently located off Los Laureles Grade. Enjoy easy access to both Monterey Peninsula or Carmel Valley. Shopping, golf and schools are all nearby. Spacious home with natural light and breathtaking views of the Valley and a peak of the ocean. SqFt: 3,358 Lot Size: 21,836 Sqft (almost 1/2 acre)

489 TOYON DRIVE, Monterey MLS #: 81028892 $649,000 Beds: 4 Baths: 3 (3/0) 
Very spacious Toyon Heights home with separate living unit and 3 car garage. Features include new windows, hardwood floors, paver driveway, updated kitchen & baths, bonus workshop and/or office space. Very well maintained. Downstairs guest unit. SqFt: 2,275 Lot Size: 16,800 Sqft
1339 DAVID AVENUE, Pacific Grove MLS# 81031499 $569,000: Beds: 3 Baths: 3 (2/1) 
Spacious, sunny & bright newer home overlooking PB forested area, large master suite, new carpeting and paint throughout. All new appliances, newly tiled bathrooms. Located at the end of a quiet CUL-DE-SAC, very private setting, low maintenance yard. Large garage + offstreet parking, patio area. All conveniently located close to shopping and schools. SqFt: 1,859 Lot Size: 6,500 Sqft
36 CASTRO ROAD, Monterey MLS #: 80922987 $2,995,000 Beds: 5 Baths: 6 (4/2) 
One of the most unique & beautiful homes on the Monterey Peninsula! This Spanish Colonial embraces The Old Del Monte Golf Course as it has for 60 years. Superior craftsmanship, terraced landscape, pool, Jacuzzi, wine cellar, office, radiant heat, BBQ entertaining area and 3-car garage barely describe this opportunity for resort living at its finest in Monterey. SqFt: 4,400 Lot Size: 39,208 Sqft (just short of 1 acre)
I’ll be there Sunday 2-4. Come by after the jazz festival, mention the show, and there’ll be a treat in store for you!

(c) Patty Ross, KRXA Radio Show #174 (September 17, 2010)