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Homes Now More Affordable, Thanks to Foreclosures

Declining home prices is actually one of the results of the enduring foreclosure crisis. Since homes have now become more affordable in most US cities, it is not surprising that sellers are grabbing the wonderful investment opportunities that the current market conditions are offering.

Across the nation, about 55 percent of properties being sold between the months of April and June were actually affordable for families with an income of $61,500. The data, which was gathered by the National Association of Home Builders, clearly showed how inexpensive homes have become. The median price of US homes have dropped by 10 percent from a year ago, to $215,000.

The decline in home prices is certainly good news for buyers and investors. Some are already plunging in the market while some are still waiting on the sideline, hoping that home prices decline further.

Unfortunately, the falling home prices is taking a toll on homebuilders. Because of the large inventory of existing homes for sale, home building has declined to a record low.

Leading the nation in home affordability is Indianapolis. Median home price in this city is at $108, 000 from $122,000 a year ago. On the other hand, home prices in New York remain to be among the least affordable in the market. A year ago, this title was held by the Los Angeles real estate market. Nevertheless, median home price for the Big Apple fell from $510,000 to $481,000. In a small way, this decline will still attract buyers eyeing New York properties.

There is no better time to invest in a property especially if you consider the better return potential offered by foreclosed homes. You should just make sure that you will do your homework before closing any deal. Check out information on foreclosure investing on leading websites especially those offered for free by foreclosure experts.

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• California Foreclosures Continue to Surge