Housing Affordability in 2012 Likely Hit Record
Washington, DC, Jan. 10, 2013 -- Housing affordability was probably the highest ever last year due to low prices and interest rates, according to the National Association of Realtors.
NAR is forecasting that its index of housing affordability hit a record level of 194 in 2012, up from 186 in 2011.
A reading of 100 means that a household with median income would have exactly enough income to qualify for buying a median-priced existing single-family home.
A level of 194 for last year means that families had almost double the income needed for buying a median-priced existing single-family home.
For 2013, NAR projects its affordability will decline to 160, which would be the third highest annual level on record.