Dennis Norman
By:Dennis Norman
The National Association of REALTORS(R) has been reporting and tracking a “Housing Affordability Index” since January 1989. The index looks at whether or not an average family (an income equal to the median income) can qualify for a loan to buy a median-priced home.
The Housing Affordabiity Index for June was at 159.2 meaning that a family with an average income has 159% of the income they need to afford an average house. This is down from the revised index for January of this year of 176.9 which makes January the month housing was the most affordable since the National Association of REALTORS(R) began this index 20 years ago.
If the index had a value of 100 that would mean a family making the median income has the exact amount of income necessary to qualify for a loan to buy a median-priced home. A value beneath 100 means the family is falling short of enough income and any over 100 means the family has more than enough income.
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