Housing affordability in the U.S. remained steady for the first quarter of 2013 when compared to the first quarter figures of 2012, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).
The HOI is a measure that calculates the percentage of homes sold to families of a particular area that earn the area's median income.
According to the HOI, a total of 73.7 percent of existing and new homes were sold in the first quarter of 2013 to families that earned a median income of $64,400. Though the percentage is slightly lesser than the 74.9 percent recorded at the same period, a year ago, the figure has never dropped below 70 since the last quarter of 2008. Housing affordability has remained exceptionally high in the past four years.
Some of the major markets where housing affordability was the highest are Ogden, Indianapolis and Syracuse. Among the smaller housing markets Cumberland, Springfield and Fairbanks did fairly well.
However, affordability in San Francisco dipped. Glendale, Sunnyvale and Santa Ana were also some of the bottom markets in the affordability spectrum. Santa Cruz was the least affordable housing market.
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"HOI results for the beginning of 2013 are little changed from what they were at the end of 2012, with Ogden-Clearfield Utah holding onto the title of the nation's most affordable major housing market and San Francisco-San Mateo-Redwood City, Calif. retaining its position as the least affordable major market," David Crowe, chief Economist at NAHB said in a statement.
The steady affordability has been credited to the record low interest rates and favorable prices prevailing in the market.
"The bottom line is that, for consumers who can qualify for a mortgage at today's attractive rates, the majority of homes being sold remain within their grasp in markets nationwide," Crowe added.
However, some experts believe that the steady housing affordability is short-lived as it is entirely dependent on the low interest rates. Once the housing market picks up greater momentum, the government is bound to increase the rates, which will affect the housing affordability adversely, reports CNBC News.
However, that will take at least three or four years to happen. Until then, the public can enjoy great affordable rates for homes.
