good Neqws for Buyers -- Housing Affordability Index Reaches Highest Peak in 1st Quarter

Housing Affordability Index Reaches Highest Peak in 1st Quarter

The Housing Affordability Index rose to a record high of 205.9 in the first quarter of 2012, breaking the 200 mark for the first time since recordkeeping began in 1970.

The National Association of Realtors, affirmed that a household earning the median income of $61,000 could afford a home costing $325,500 in the first quarter. That's remarkable purchasing power when you consider that the median cost of an existing home nationwide is $158,100.

NAR President Moe Veissi, said market conditions are optimal for home buyers. "For those with good credit, we've never seen better housing affordability conditions or market opportunities than we see at present," he said. "Although home prices are stabilizing and sales are rising, some buyers still have to jump through hoops to convince a lender that they are creditworthy. This is especially true for self-employed buyers."

Currently, the median monthly mortgage principal and interest payment for a median-priced home would take only 13.5% of gross income.

Also, conditions for first-time homebuyers have never been better. A companion index measuring the ability of first-time homebuyers to purchase a home rose to a record high of 135.8 in the first quarter. The index is configured differently for first-time homebuyers: an income of 65% median ($39,632), a starter home of 85% median ($134,400), and a down payment of 10%.

Go ahead satisfy your curiosity, find out how much house YOU can afford. Call or email Paco Aramburu at: 773 865-5678 or paco@jamesonsir.com. No fees, no hard sales, just the facts.

 


Posted by Paco Aramburu on 07/05/2012
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Jason
7/10/2012
 9:31 PM

Great job on the article, keep up the good work!

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