Housing affordability conditions have reached the highest level since recordkeeping began in 1970, according to the National Association of Realtors®.

1. KENDRICK A. CLARK SR
REALTOR®
Coldwell Banker
400 S Park Ave Ste 210
Winter Park, FL 32789-4320
email
407-683-0106 (Mobile)
My website
Real Estate News
Housing Affordability Index Hits Record High
Washington, March 06, 2012
Housing affordability conditions have reached the highest level since recordkeeping began in
1970, according to the National Association of Realtors®.
NAR’s Housing Affordability Index rose to a record high 206.1 in January, based on the
relationship between median home price, median family income and average mortgage interest
rate. The higher the index, the greater the household purchasing power.
An index of 100 is defined as the point where a median-income household has exactly enough
income to qualify for the purchase of a median-priced existing single-family home, assuming a
20 percent down payment and 25 percent of gross income devoted to mortgage principal and
interest payments. For first-time buyers making small down payments, the affordability levels
are relatively lower.
NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said this latest
data underscores buyer opportunities in today’s market. “This is the first time the housing
affordability index has broken the two hundred mark, meaning the typical family has roughly
double the income needed to purchase a median-priced home,” he said. “For buyers who can
qualify for a mortgage, now is a very good time to become a homeowner.”
NAR projects the affordability index for all of 2012 will be at an annual high, with little
movement in mortgage interest rates or home prices during the year. “Housing inventory levels
have declined to a point where conditions are becoming much more balanced in much of the
country,” Veissi said. “If access to credit improves, we could see a much more meaningful

2. increase in home sales and broader stabilization in home prices with modest gains in areas with
stronger job growth.”
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade
association, representing 1 million members involved in all aspects of the residential and
commercial real estate industries.
-The National Association of Realtors®