Home Affordability Best Since 1970’s
Filed Under Orlando Real Estate · Tagged: orlando home affordability, Orlando real estate
Good news for Home Buyers: Recent data from the National Association of Realtors (NAR) indicates that its home affordability index is at the best levels since the 1970’s. The index compares average family incomes to average home prices nationaly. A value of 100 signifies that a family earning the median income has enough income to qualify for a mortgage on a median-priced home, where the monthly payment is conservatively figured to not exceed 25% of the monthly family income.
The current Home Affordability Index is currently at a staggering 141.8 - which means that a family earning the median family income has 141.8 % of the income necessary to qualify for a conventional loan covering 80 percent of a median-priced existing single-family home. This is even better than the number of 119.4 from the same time last year, and is in fact the best since the early 1970s - and the best ever since the NAR began determining this ratio monthly in 1981.
Orlando Real Estate is no exception and prices here have never looked better. Of course financing is more challenging today although interest rates are still at historic lows.