And Texas housing is a better value than anywhere else in the country, the Housing Affordability Index indicates.
The Real Estate Center at A&M released the index numbers for the second quarter last week.
“Nationally, housing affordability has improved considerably as the overall median home price continues to descend from its record high in mid-2006,” said Dr. Jim Gaines, research economist with the center. “As the HAI figure suggests, Texas remains even more affordable despite the fact that home prices in the state increased modestly during the first half of the year.”
Factors that help keep Texas and regional housing prices low, according to Gaines:
n Relatively cheap land prices
n A builder-friendly business climate
n Most lenders weren’t caught up in subprime frenzy
n Homeowners are good at balancing supply and demand
n Jobs are being created
The index is “the ratio of median family income to the income required to qualify for an 80 percent fixed-rate mortgage to buy a median-priced home.” The higher the number, the more affordable the housing market is, Gaines said.
The median home sales price in Temple and Belton was $122,000 in April; $128,000 in May; and $124,000 in June, according to the Multiple Listing Service.
Carroll Wilson,
Telegram managing editor
