The housing inventory crunch is driving up home prices in several markets where supply continues to lag demand, but borrowers can afford properties in some of these areas when local market conditions are taken into account. Here’s a look at 12 cities where home prices are higher, but local market conditions make them surprisingly affordable. Home prices adjusted for regional affordability are lower than they were in 2000 for all except four of these 12 markets. Because borrowers in these areas find it easier to qualify for loans to buy homes with moderately higher prices, they are attractive markets for mortgage lenders.
Source: National Mortgage News