According to the Wells Fargo Housing Opportunity and National Association of Homebuilders Index, the most affordable housing market is Indianapolis, with a 94.5 percent affordability score.

The city’s median home price is $107,000 and the median income is $68,100. With the median household income fairly high, a family earning the median income can buy a 4-bedroom 4-bath home in the city for $150,000.

The NAHB considers a house in a certain city affordable if a household earning the city’s median income can make their monthly home loan payments by spending not more than 28 percent of their monthly income.

Just like in other cities, foreclosures contributed to the decline of home prices in the city. In the first half of the year, based on a nationwide survey of 203 metro areas with the biggest foreclosure rates, Indianapolis ranked 46th with 1.48 percent of all its housing units getting default or foreclosure notices. Over 11,000 homeowners with home loans received delinquency or foreclosure notices.

Despite the increased affordability, however, the number of pending home sales in the 9-county Indianapolis area in July dropped by 3.1 percent compared to July last year, based on a report from a local based real estate research firm.

Pending home sales decreased to 2,267 contracts from 2,339 contracts in July 2008. Pending home sales in the first 7 months of this year also decreased, falling by 9.1 percent compared to the first 7 months last year.

The number of contracts to purchase decreased in 6 of the 9 counties, but Hamilton, Marion and Johnson counties experienced upticks.

Meanwhile, average home prices in July and in the first 7 months of 2009 declined compared to average prices last year. The average price in the first 7 months dropped to $136,943, compared to the average price of $155,240 in the first 7 months of 2008, marking a nearly 12-percent decrease.

Despite job cuts and layoffs in the auto industry, the city of Indianapolis has kept its unemployment rate from soaring to high levels by increased industry diversification. Banks, government agencies, insurers and pharmaceutical operations have all contributed to keep many residents employed.

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The $7 million budget that the city plans to use came from the $4-billion national fund for federal Housing and Economic Recovery Act. The said bill was approved July of this year.

Residents of the city can read the plans for the said properties at Fort Wayne’s official website www.cityoffortwayne.org. Comments about the plans are welcomed by the city until the 24th of November this year.

As expected, not all abandoned and foreclosed homes in the city are up for demolition. Director of Community Homes John Urbahns said that assessments on the units are still underway. Units that are fairly solid homes will be spared. This is also to reinforce the city’s plan to attract developers to rehabilitate foreclosure properties. The said rehabilitation is said to lure buyers looking for repossessed houses.

Concerns on foreclosures came after an alarming report about mortgages in the city. Mortgage lenders and servicing agents are reported to have foreclosed almost 3,665 properties from 2006 to 2008 alone. In 2006, Allen County is reported to have had 1, 156 foreclosed mortgages-a number that is perceive to increase at the end of 2008.

However, the said plans have yet to take place soon. The local government has deemed it necessary to first assess if the allotted budget would suffice for the said programs on foreclosed and abandoned properties.

Asked if he thinks that the city will be owning new houses soon, Mayor Henry has an answer to offer. He said that the city is just finding alternative ways to encourage investors in developing and renovating the increasing number of foreclosures in their area—an obvious attempt to refurbish Fort Wayne’s old housing stock.

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