Housing Affordability Index Hits Record High

WASHINGTON- March 7, 2012- Housing affordability conditions have reached the highest level since record-keeping began in 1970, according to the National Association of Realtors. (NAR)

NAR’s Housing Affordability Index rose to a record high 206.1. 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-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 & Associates Inc. in Miami and 2001 Florida Realtors president, says 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,” Veissi says. “For buyers who can qualify for a mortgage, now is a very good time to become a home owner.”

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 says. “If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices, with modest gains in areas with stronger job growth.”

To read more about house affordability index please go to FloridaRealtors.org

Greater Pensacola, FL Real Estate Experts – Making It Happen for Buyers and Sellers!

Grand Realty is a greater Pensacola real estate company that opened its doors in June of 2003. We strive to help all of our clients with their individual real estate needs, whether it’s buying a home in Pensacola FL and the surrounding area or selling their existing Pensacola property.

We have approximately 30 agents with a wide range of specialties that include:

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Grand Realty is also proud to say we have agents who are bilingual, Spanish and Chinese that are placed throughout a good majority of Northwest Florida including Pensacola, Milton, Pace, Navarre, Perdido Key, Jay, Cantonment, Gulf Breeze, and Navarre. The Broker of Grand Realty is also licensed in Alabama. Please feel free to email or give us a call, and from everyone at Grand Realty, thanks for your business!

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3806 Hwy 90, Pace, FL 32571
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