Global survey: U.S. homes are most affordable

United States real estate offers a lot of bang for your buck, according to a new survey that shows U.S. homes are the cheapest relative to incomes among English-speaking nations.

Australian homes – which have a median price of $454,000 – were found to be the most unaffordable among English-speaking nations, according to the report by consulting firm Demographia, which examined affordability in the third quarter of 2010. The median home in Australia costs 6.1 times the gross annual median household income. What’s more, 85 percent of the homes in Australia’s major cities were more than 5.1 times average income, according to the survey.

On the other hand, U.S. homes have a median home price of $168,000 and homes cost only three times yearly income or less.

The priciest city for real estate, in general: Hong Kong, with homes costing 11.4 times income. (The report considers any markets where home prices are 5.1 times household income or more very unaffordable.) Prices in Hong Kong have increased by more than 50 percent in the past two years due to low interest rates, an expanding economy and buyers flooding in from China.

The United States boasted the most affordable major markets. Atlanta was the most affordable big city, in which the median home price is $129,000.

Meanwhile, the most unaffordable markets in the U.S. were mostly found in California: San Francisco (homes cost 7.2 times income), San Jose (6.7 times), San Diego (6.2 times), New York (6.1 times), and Los Angeles (5.9 times).

Nation's cold snap may heat up Florida's real estate market

Finding an escape from the snow last week was tough. Nearly 70 percent of the contiguous United States was covered in the white stuff. The National Weather Service said that every state except Florida reported snow on the ground — even Hawaii.

The Lower Keys of Florida, was the farthest away from snow that you could get without leaving the US. The warm climate, the ocean and the lack of an income tax, appeal to home buyers.

Key West, the southernmost point, is also rich in culture. It's an old historic city with a live and let live, non-judgemental attitude. It is more cosmopolitan than the rest of the Keys, with lots of theaters and galleries. At the center of its famous Old Town is lively and colorful Duval Street, lined with bars, evening strollers and nightlife. Key West has areas — including New Town, Midtown and Casa Marina — where homeowners can walk to shops and restaurants, but Old Town is the most desirable. It is charming. In Old Town, you can get something tiny: a one bedroom, one bath from $300,000. But it is $500,000 minimum for something decent. And the high-end starts at $3 million. In Old Town, you cannot tear down, just renovate, and there are old Victorians and what they call conch houses. It's a small - 2 by 4 mile - competitive island market, where a bargain can be very hard to find even with the help of an agent who is tapped into the local coconut telegraph.

2011 Bleakest year in foreclosures? Time to Buy?

Banks took back 1 million homes in 2010 and are poised to take back more homes this year than any other since the U.S. housing meltdown began in 2006. About 5 million borrowers are at least two months behind on their mortgages and more will miss payments as they struggle with job losses and loans worth more than their home's value, industry analysts forecast.

"2011 is going to be the peak," says foreclosure tracker RealtyTrac Inc.

One in 45 U.S. households received a foreclosure filing last year, or a record high of 2.9 million homes. That's up 1.67 percent from 2009.

The pace slowed in the final two months of 2010 as banks reviewed their foreclosure processes after allegations surfaced in September that evictions were handled improperly. Under increased scrutiny by the government, lenders temporarily halted taking actions against borrowers severely behind on their payments. However, most banks have since resumed their eviction processes, and the first quarter will likely show a rebound in foreclosure activity.

Foreclosures are expected to remain elevated through the year as homeowners contend with stubbornly high unemployment, tougher credit standards for refinancing and falling home values. Sharga said he expects prices to dip another 5 percent nationally before finally bottoming out. The decline will push more borrowers underwater on their mortgages. Already, about one in five homeowners with a mortgage owe more than their home is worth.