housing affordability index

housing affordability index

Developed by the National Association of REALTORS® to track the financial ability of consumers to buy homes.Many state organizations publish similar indices for their local markets.The benchmark is 100,sometimes expressed as 1.0.It means that a family earning the median income has exactly enough money to qualify for a mortgage to buy a median-priced home in that market.It assumes a 20 percent down payment,and that mortgage payments will not exceed 25 percent of income.A figure less than 100,or less than 1.0,means that the median income family cannot afford the median house. A greater figure means the median income family can afford a home more expensive than the median home.When a trend line is declining,it indicates that housing is becoming less affordable. Upwardly trending numbers mean housing is becoming more affordable. National figures may be obtained by going to the National Association of REALTORS® Web site, www.realtor.org, and clicking on Research, then Housing Statistics, and then Housing Affordability Index.

Mentioned in ?
References in periodicals archive ?
CALIFORNIA ASSOCIATION OF REALTORS Traditional Housing Affordability Index
3 Housing Affordability Index * 196 176 165 134 * The housing affordability index measures the ability of a family earning the median income to purchase a median-priced home.
The RBC Housing Affordability index, compiled since 1985, looks at the calculated costs of owning a detached bungalow at the present market value.
The realty trade group's First-time Buyer Housing Affordability Index stood at 64 percent in last year's final quarter, meaning 64 percent of households could afford to buy an entry-level home.
The association's First-Time Buyer Housing Affordability Index also rose 7 percentage points in the first quarter of this year compared with the fourth quarter of 2008, due to a 14.
This is according to the Lombard Street Housing Affordability Index which found that affordability for house-hunters has improved over recent months.
Canada's housing affordability mildly deteriorated in the fourth quarter of 2005 due to relatively weak growth in household income, according to the latest Housing Affordability Index released by RBC Economics.
CAR's First-time Buyer Housing Affordability Index based its findings on an adjustable interest rate of 6.
s First-Time Buyer Housing Affordability Index (FTB-HAI)--which measures the percentage of first-time-buyer households that can afford to purchase a home in California--dropped to 24 percent in the third quarter, compared with 28 percent of first-time buyers who could afford a median-priced home during the same period a year earlier.
EXPECT a ``slow puncture'' in the housing market because earnings are failing to keep up with house prices, warns Cheltenham& Gloucester's Housing Affordability Index.
The Housing Affordability Index is at 203 and is 6 percent higher than last December.

Full browser ?