Housing affordability improves to begin 2012

May 16th, 2012

affordability-has-increased-in-the-housing-market-_16001261_800777212_0_0_8477_100

 

The National Association of Realtors recently announced that affordability in the housing industry has reached record heights.

The group’s Housing Affordability Index for the first quarter rose to 205.9, which was the highest level on record. Since information began being recorded in 1970, the index had not surpassed 200. The figure represents the connection between median home prices, median family income and the average mortgage rate.

“For those with good credit, we’ve never seen better housing affordability conditions or market opportunities than we see at present,” said Moe Veissi, president of NAR.

Veissi added that despite this, it still could be difficult to get a mortgage for some, even if they have good credit, the report explained. This is due to some remaining lenders hesitant to approve loans. But home sales will continue to improve if mortgage lending restrictions are relaxed.

Global relocation throughout the United States may be made easier with such high affordability. Low mortgage rates and home prices may allow employees to move more easily and make them more amenable to a relocation offer.