According to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), housing affordability is near it’s highest level in 20 years. This is great news for people in the market for their first home or someone looking to own a vacation home or investment property.
The Housing Affordability Index has a value of 100 when the median-income family has sufficient income to purchase a median-priced existing home. A higher index number indicates that more households can afford to purchase a home. The HAI is calculated using the following formula:
HAI = ( Median Family Income / Qualifying Income ) * 100
Applying this formula to July statistics In Jacksonville:
145.45 = ($44,173 / $30,368) * 100
We see that the typical Jacksonville household had 145.45 percent of the income necessary to purchase the typical home. Homebuyers are regaining confidence in the market and finally making the decision to purchase homes. This may be why some housing markets across the country, including Jacksonville, have stabilized and are beginning to show signs of a budding recovery.