3 Reasons To Ask Your Realtor For A Lender ReferralYou are one in a million if you have enough cash to buy a home! For most people getting pre-approved for a home loan is one of the first steps in
What Is The Housing Affordability Index
The housing affordability index measures whether or not a typical family earns enough to qualify for a mortgage loan on a typical home at national level based on the most recent price and income data, according to the National Association of Realtors (NAR).
What does this mean?
A family with a housing affordability index of 100 is a normal/typical income which qualifies them for a medium-priced home. The higher the index, the easier it is to afford a home. Let’s look at the housing affordability index over the past few decades:
From 2009-2013 we see a large fluctuation which came from the housing crisis flooding the market with homes (1 in 3 homes coming from foreclosures and short sales and selling at a lower price compared to its listing price). Soon after, mortgage rates fell quite dramatically. If we compare our housing affordability index now to the one in 1990, we seem successful, but when comparing 2009-now, is seems as though we are in midst of another crisis.
But that is not the case:
In fact, the housing market is known for its bounce-backs. When we look from 1990-now, we are witnessing a bounce-back, not a failure.
Julie Baldino is a seasoned veteran of the Pacific Northwest real estate industry, and has consistently been in the top 10% in sales for over a decade in 2 states. In order to accommodate a rapidly ex....