According to a report issued by the National Association of Homebuilders and Wells Fargo, housing affordability hit a new record high this year, surpassing the previous high set in fourth-quarter 2010. In fact, it is the highest level recorded in the more than 20 years the index has been in existence.
In a nutshell, this means that nearly 75 percent of the homes sold in the first quarter of 2011 were considered affordable, based on the national median family income of $64,400. To put the significance in perspective, the index had never even hit 70 percent before 2009. 65 percent was rare.