Dallas Area Homes Have Become More Affordable

Posted by Emily Ray-Porter Group on Friday, February 20th, 2009 at 12:31pm.

Dallas-area homes have become more affordable, report says

10:42 PM CST on Thursday, February 19, 2009

By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com

Falling home prices and mortgage rates have made Dallas-Fort Worth even more affordable for residential buyers.

At the end of 2008, more than 67 percent of the homes sold in the D-FW area were affordable for residents earning the area's median family income, according to a new report by the National Association of Home Builders.

That's the D-FW area's highest affordability ranking in four years.

By comparison, about 62 percent of U.S. homes sold in the final quarter of 2008 were considered affordable to U.S. families with a median income of $61,500, said the quarterly report, which was released Thursday.

"Falling home prices and very favorable mortgage rates both contributed to the housing affordability gains we saw in the fourth quarter of 2008," said association chairman Joe Robson, a builder from Tulsa, Okla. "However, at the same time, worsening economic conditions, historically low consumer confidence and uncertainty about future home prices kept many qualified buyers on the sidelines."

The D-FW area ranked 112th in terms of home affordability out of the 222 U.S. markets in the builders' year-end 2008 report.

In Texas, Fort Worth was ranked the most affordable homebuying market in the fourth quarter – 79 percent of median income households could afford to purchase.

The most expensive Texas big city market was El Paso, where only 33.9 percent of housing purchases were affordable in the fourth quarter.


 

HOW TEXAS MARKETS COMPARE

Here's a look at the percentage of homes sold in a given market in the fourth quarter of 2008 that were considered affordable to median income families and their U.S. ranking:

U.S.

62.4%

NA

MOST AFFORDABLE

 

 

Indianapolis

93.1%

1

 

 

LEAST AFFORDABLE

 

 

New York City

13.9%

222

 

 

TEXAS CITIES

 

 

Austin

67.2%

115

 

 

Corpus Christi

57.3%

161

 

 

Dallas

67.5%

112

 

 

El Paso

33.9%

213

 

 

Fort Worth

79%

46

 

 

Houston

66.2%

119

 

 

San Antonio

62.3%

140

 

 

NOTE: The National Association of Home Builders/Wells Fargo quarterly housing opportunity index measures the percentage of homes sold in each area that are affordable to families earning that area's median income. Prices of new and existing homes sold are collected from actual court records by and compared with median incomes and mortgage financing conditions in the area.

 

 

 

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