Forbes recently took a look at the number of homes sold in the last quarter in the 50 largest real estate markets and compared the cost of those homes to the median household income in those areas. This rating, called the National Association of Home Builders' (NAHB) Housing Opportunity Index (HOI) incorporates income data from HUD, transaction data from court records provided by a leading real estate marketing company, and prevailing interest rates as reported by Wells Fargo. The declining nature of the national real estate market means that houses in nearly all areas are becoming more affordable, but this measure identifies those areas where prices are declining the fastest while the local economy is staying about the same or is declining more slowly than the real estate market--that is those areas where affordability is changing the fastest.
Providence ranked #6 on the list, and has a HOI of 50% meaning that half of all homes sold in the last quarter were affordable to the median-earning family. The study found that home prices fell an average of 8.1% since 2007 when the median home price was $293,400 and affordability was at 33% (1/3 of homes sold were "affordable" to the median-earning family).
With interest rates still at historic lows, and prices continuing to decline, now is the perfect time to buy in the Greater Providence area. Special financing for qualified buyers, including no money down gift programs through FHA, is still available. Contact me for more information on Providence area real estate and financing programs.
