Half of Families Can Afford Most Homes on the Market Report

http://www.dsnews.com/articles/half-of-families-can-afford-most-homes-on-market-report-2011-02-01



According to data from Movoto.com, a real estate site based in California, more than half of American families can afford to buy a new home based on income levels and listing prices.

A person with an annual salary of $64,400 could reasonably afford a $215,000 home with a 5 percent down payment, an interest rate of 5 percent on a 30 year mortgage, and property taxes at 1.25 percent, assuming a monthly mortgage payment to monthly income ratio rate of 25 percent, the company explained in a statement.

Movoto.com reports 55 percent of homes for sale on Movoto.com are priced under $250,000 and 24 percent are priced between $150,000 and $250,000 as of late December 2010. Movoto also reveals that 53 percent of home searches in December were for listings in the below-$250,000 price range.