Home affordability levels are at near record highs. The National Association of Home Builders housing opportunity index (HOI) shows that in today’s real estate market over 72% of all new and existing homes sold in the second quarter of the year were highly affordable to families earning the national median income.

Smaller markets in the heartland are seeing an even higher rate of affordability, like in Indiana where over 95% of homes sold in the second quarter of 2011 were sold to families earning a lower median income.

“At a time when home ownership is within reach of more households than it has been for more than two decades and interest rates are at historically low levels, the sluggish economy and the extremely tight credit conditions confronting home buyers and builders remain significant obstacles to many potential home sales,” said Bob Nielsen, chairman of the National Association of Home Builders (NAHB).

Unfortunately the high levels of affordability, even with historically low mortgage interest rates, has not translated into more home sales – existing home sales declined in July, down 3.5% from June.

Lawrence Yun, NAR chief economist, said there is a tug and pull on the market. “Affordability conditions this year have been the most favorable on record dating back to 1970, but many buyers are being held back because banks are offering financing to only the most highly qualified borrowers, ignoring a large share of otherwise creditworthy buyers,” he said. “Those potential buyers represent the difference between an uneven recovery and a much more robust housing market that could stimulate additional economic activity and create jobs.”

However, the temporary decline in foreclosures that some analysts attribute to a temporary pause for lender or judicial procedural reviews, could instead be a true decline in foreclosures.

According to the MBA “foreclosure start rates fell to their lowest level since the fourth quarter of 2007. Foreclosure inventory rates also fell, to their lowest level since the third quarter of 2010.”

Some experts argue that this drop in foreclosures is only a temporary drop which does not reflect the problems that may be ahead as there are still many problem loans that need to be resolved. There is a silver lining in all of this however:The percentage of loans 90 days or more past due continues to fall along with the foreclosure rate, and is at the lowest point since the beginning of 2009. Were there a growing backlog, one would expect to see the 90-plus day delinquent category increasing.

Without this backlog, foreclosures could be losing steam, meaning prices and the market as a whole could be headed toward stabilization and eventual recovery. NOW may be the best time to not only invest in Boise real estate but also to jump into the market if you are a first time home buyer looking to stop renting. Contact the Boise Real Estate Company today to start finding the best homes in Idaho online!