Home Sales Rise as Affordability Gains : Economy: Falling prices in a weak market put housing within reach of more consumers.

The nation’s beleaguered real estate market appears to have bottomed out in November as sales rose, prices fell and overall housing affordability rose to the highest level in 13 years, economists said today.

The Commerce Department reported sales of new single-family homes increased to an annual rate of 506,000 in November from a revised rate of 492,000 the month before.

In a separate report, the National Assn. of Realtors said housing is at its most affordable level in 13 years during November.

The association’s housing affordability index, which measures the ability of a typical family to buy a median-priced home, rose to 115.6 in November from 113.3 the month before.

That means that a family earning the national median family income of $35,467 had more than enough of the income needed to qualify for a conventional mortgage for a median-priced home.

The index reached its highest level since December, 1977.

November’s sales pace was still 26% below the year-earlier sales rate of 687,000 houses. Through November, 509,000 new houses were sold, down 17% from year-ago sales of 610,000.

The government also reported that the median sale price of new homes was $121,500, compared to $125,000 the year before.

Declining interest rates and rising consumer confidence during the month led economists to say the weakened housing market appears to have stabilized.

“The good news is it looks like we have hit bottom,” said Dick Peach, chief economist for the Mortgage Bankers Assn.

The Midwest posted the greatest gain in new sales with an annual rate of 84,000, up 7.6% from October. The West followed with a rate of 120,000, up 7.1%; the Northeast gained 1.25% to an annual rate of 81,000, and the South slipped 0.8% to an annual rate of 221,000.

“Home sales activity belies true market conditions, which according to our index, are better than they’ve been in 13 years. However, consumers are realizing this, as evidenced by the increase in existing-home sales during November,” said the association’s president, Harley Rouda.