Galvestonbuilders.org

Home sales are on track to outperform last year's rate. Main reason behind this affordability credit goes to the the improving job market, sustained economic growth, and, of course, superior housing affordability conditions. Experts are predicting home sales to reach higher than 5 million for this year–up about 7-10 percent over last year.

Currently unemployment stands at about 9 percent, but more than 100,000 jobs are created monthly and nationally that could mean 1.5 million new jobs in 2011.

Still, housing prices are the most affordable ever which means that, those who earn the national median income have 170 percent of the income needed to purchase a home priced at the national median. Experts in the field expects that the median existing-home price to stay at approximately $170,000 for the next couple of years.

What helps to make these homes so affordable are the low interest rates. But despite the low rates and affordable housing, the lending conditions are not quite ripe for increasing home sales even though lenders are now in a position (with plenty of cash) to make loans to qualified buyers. While then the strict lending standards are being blamed for the present lack of more robust housing sales.