Affordability at 40-year high
Judging housing affordability by the relationship between median home price, median family income and average mortgage interest rates, the National Association of Realtors (NAR) says that homes are the most affordable they’ve been since record-keeping was started more than 40 years ago.
According to the president of NAR, for the first time ever the affordability index has broken two hundred — meaning the average family has roughly twice the income required to purchase a median-priced home.
Owning less than renting
Marshall Vest, author of the the Eller College of Management’s 2012-2013 Economic Outlook Report (updated quarterly) notes that affordability in Tuscon, AZ in 2012 has been so high that on a monthly basis, owning a home can cost the same or even less than renting one.
It is still a tough market— tight credit for builders and buyers alike along with ongoing issues obtaining accurate appraisals continue to slow recovery and constrain the market to the most qualified and determined buyers.