Housing Affordability Conditions Reach Record High

The National Association of Realtors’ Housing Affordability Index measures the relationship between median home price, family income, and average mortgage rate to determine how affordable it is to buy a home in the current housing market. During the first quarter of 2012, the index reached a record high of 205.9. According to the report, a household earning approximately $61,000 could afford a $325,500 home. Moe Veissi, NAR’s president, said there has never been better housing affordability conditions or market opportunities as there are today for potential home buyers. A component index tracking affordability conditions for first-time buyers hit a record high as well. Based on affordability factors, a typical first-time buyer making 65 percent of the median family income could afford a home costing $182,500. More here.

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