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Houses in the US More Affordable in 2008

Falling home prices aren't good news for homeowners who purchased homes during the boom, but the drop could mean affordable buying opportunities. Fifty-five percent of homes sold from April through June were affordable to Americans earning the median household income of $61,500, and prices dropped from $240,000 during the same time last year to $215,000 this year.

The obvious growing affordability of houses in the US hasn't translated into increased sales. A National Association of Home Builders economist explained, "Actual sales haven't picked up, because people are waiting on the sidelines as they fear home prices will continue to decline."

Indianapolis's median home price of $108,000 has positioned the city as the most affordable metro area in the US. On the other end, New York — with its median home price of $481,000 — edged out last year's Los Angeles as the metro area with the least affordable housing. Are you shopping for a house any time soon or holding out for prices to drop?


LoveSarah LoveSarah 9 years
Wish I could buy now, but it just wont happen any time soon. Plus, I'm still in college, and my fiance and I have no idea on where we actually want to settle down for a while. So, now is just not the time.
Da-Ly Da-Ly 9 years
I'm hoping the hubby and I get a house mid 2009 or early 2010. We're not really in a rush since we really like the savings that comes with Double Income No Kids. :) In the meantime, I'm content to kick back and watch the market.
Glitterbug Glitterbug 9 years
We live in L.A. as well and while prices have dropped considerably since '05, they still have a long way to go before returning to somewhat affordable levels. That being said, I keep a close eye on the neighborhoods I love but we won't be seriously looking to buy until late 2009 - which means even more price drops! On the flip side, sadly, most of my friends who purchased in 2005/06 and overpaid for their properties (i.e. condos in the 600K range) are now SERIOUSLY regretting it, and trying to sell. I don't think prices will bottom out until 2010 or even later.
ehadams ehadams 9 years
Living in LA, we are waiting for prices to drop even more- we are looking now but not seriously, just keeping an eye on price trends, neighborhoods, etc. In the area we want houses (or condos for a slightly nicer area) are almost affordable for our salaries. We except mid-2009 to be a lot better.
californiagirlx7 californiagirlx7 9 years
I don't think housing will ever be affordable again in the Bay Area, at least not for college-age people like me. I'm still living at home and I probably will be until I graduate :/
a-nonny-mouse a-nonny-mouse 9 years
gabiushka -- Which countries offer you the lifestyle you'd like at a more affordable price? Have you researched? (I haven't had much experience outside the US, so I'm interested to learn about this kind of thing.) psterling -- Congratulations to you and hubby.
bellaressa bellaressa 9 years
Congrats on the new house psterling!!!!
psterling psterling 9 years
My husband and I JUST bought our first house last week! We can't wait to move. Prices definitely helped us, last year our house was worth 70K more than it is now. By the time we want to sell we'll definitely see a good return- even if prices drop a little farther in the short-run. I'm not worried about it.
bellaressa bellaressa 9 years
No, I am still saving for a downpayment - I wish I was in a position to buy now.
gabiushka gabiushka 9 years
We contemplate the idea, but we are most likely to end up moving out of this country to be able to have the lifestyle we prefer.
ilanac13 ilanac13 9 years
it's so frustrating - i bought my house in 2006, and i got a great deal on it but now if i were to try to sell it i would lose money. my broker keeps telling me that now is a great time to look to buy a house for myself and my fiance - and i'm just afraid that i won't be able to get a mortgage on a new house knowing that i've still got one on another place in Florida. i think that if i can provide that i get the rent paid for and it's an 'investment' property - then i should be fine. i'd love to be able to get a place to start a family - so we'll see what 2009 brings for the market.
RosaDilia RosaDilia 9 years
Well, living in NYC, I guess I'll never be able to afford a condo. I live in Brooklyn and the borough has been going through a major condo development boom (area closest to Manhattan)within the past 5 years or so that it's making it impossible to even rent in the area.
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