US Housing Affordability Index

Over more than 30 years ago, the US Housing Affordability Index was developed  to help home buyers and sellers figure out when it is a good time to buy or sell a home.

The Housing Affordability Index is considered especially advantageous to the buyer when the index is over 100, because this means a typical American median income family can qualify for a median price home within their market.

Generally this information is obtained from the National Association of REALTORS'(NAR).

Now, there are clearly different markets, and different subtleties within those regional and local markets. Boulder, Colorado for instance, may have a completely different index than, let’s say Phoenix, Las Vegas, Miami, or Detroit. That we all know is pretty obvious.

If we’ve been listening to the media recently though, we’re hearing about reduced unemployment claims nation-wide, job growth in many areas, and especially low inventory levels (fewer homes for sale in the marketplace).

What’s also interesting is that the number of homes sold is out pacing the previous two years,year-over-year, at an alarmingly fast pace.

Call, text, or email me today!

I’d seriously enjoy having the opportunity to talk to you about your plans if you’re moving, or if you know someone who is considering a move, and needs some straight answers.

Recent figures just released by the National Association of REALTORS’ economic department indicate that the 2011 index of 184.5 is the highest annual average since it has first been calculated decades ago. December 2011 was the most recent month released at 194.9. The index is also broken down into four regions of the country.

The two major components that contribute to the index are home prices and mortgage interest rates which are lower than they’ve been in the last five years which account for the dramatic rise in the index since 2006.

The Housing Affordability Index is another indication that this is a good time to buy! Certainly buying  a home requires you to have good credit, a down payment, and a verifiable / steady job. It may be the best time we’ll see in our lifetimes to buy a home.

Zachary Epps, GRI, ABR, REALTOR®, Eco-Broker®, full-time RE/MAX professional, and author of the Boulder Real Estate and Neighborhood Guide, The Boulder Condo Guide, and The Home Buyer’s Handbook.

Call, text, or email me today! … I’d seriously enjoy having the opportunity to talk to you about your plans if you’re moving, or if you know someone who is considering a move, and needs some straight answers.

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