Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

4. Modesto, Calif.

Median home price: $127,000
Median income: $62,000
Affordability score: 92.5%

Yesterday we highlighted Madera in the Central Valley as one of the nation’s cities where prices have risen the most. Not too far away we find that Modesto ranks fourth as the most affordable U.S. city to buy a home.
The ranking based on home prices, median income and mortgage rates, come according to the National Association of Home Builders and Wells Fargo.

Modesto, like many other Central Valley homes, took a hard dive during the California’s housing bust.

Construction and home prices both boomed prior to the 2006 peak, as buyers sought homes that were cheaper than in the Bay Area. People were willing to commute to San Francisco and San Jose just to afford a home.

Those people who did buy back then have seen the bubble not only burst but the prices kept falling. Home prices in Modesto have sunk 67% from their 2005 crest to the current median of $127,000, almost $40,000 below the national level.

Foreclosures and short sales still plague Modesto. The metro area contained the second highest foreclosure rate in the nation during the first quarter of 2012.

Like Madera and other Central valley cities, the unemployment rate stood at an uncomfortably high 17.4% level in March, more than twice the national rate. So, families who hold steady employment can easily afford the beaten down home prices in the area.

Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

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4 Comments

Filed under California, Foreclosure, short sales

4 responses to “Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home

  1. yasminallen5987

    Reblogged this on yasminallen.

  2. Pingback: Modesto Ranks Fourth As Most Affordable U.S. City To Buy A Home « yasminallen

  3. Pingback: What You Must Earn To Buy A Home In California Cities | Resource Blog

  4. Pingback: Some Think That The Great Real Estate Bubble May Not Be Finished Bursting | Resource Blog

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