Boulder Real Estate - Home Affordability Index Reaches New High
According to DSNews, home affordability has reached the highest level EVER, since records started being kept in 1970. In other words, housing affordability is at the highest level it has ever been over the last 42 years!
What is the Home Affordability Index anyway? The home affordability index is the relationship between the median family income, median home price and the average mortgage rate.
This is the first time since records started being kept that the housing affordability index has exceeded the two hundred mark.
What does that mean exactly? It means this is the first time that a typical family has DOUBLE the income needed to purchase a home priced at the median level.
The National Association of Realtors is predicting that the affordability levels will continue through 2012. They are also predicting modest increases in home values in areas with stronger job growth if only the access to credit improves.
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