NAR: 2012 could be a record year for housing affordability

Good news if you were shopping for a home in 2012. Home prices coupled with record-low mortgage rates resulted in one of the most affordable housing markets in years, the National Association of REALTORS® (NAR) reports.

NAR tracks affordability through its Housing Affordability Index, which looks at the relationship between median home price, median family income and average mortgage interest rate. NAR is projecting the 2012 housing affordability index to set an annual record. Said NAR Chief Economist Lawrence Yun:

“Although 2012 was highest on record, the excessively tight underwriting precluded many would-be homebuyers from locking-in generational low interest rates,” he said. “Rising home prices and a gradual uptrend in mortgage interest rates will offset improvements in family income, but 2013 likely will be the third best on record in terms of household buying power. A window of opportunity remains open for buyers who can qualify for a mortgage.”

Read NAR’s news release for the details.

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About Stephanie Sievers

Stephanie Sievers is Senior Editor for the Illinois Association of REALTORS®. She serves as Senior Editor for IAR publications including the Illinois REALTOR® magazine and all other IAR publications. She is responsible for developing content for the Illinois REALTOR® Weekly Connection e-newsletter, coordinates the IAR Twitter account content at ILREALTOR and plans and develops content for videos. She assists in developing and writing content for the IAR blog. She also is involved in researching and drafting news releases and coordinates the news media distribution database and newsclips reports for the Association. She also assists in IAR spokesperson training seminars and is involved in development of association briefing materials on issues. She assists with the housing statistics program and reports.