Housing affordability was at a two-year high in October, giving those with the financial wherewithal or flexibility a prime time to enter the market, the National Assn. of Realtors said today.
The association’s housing affordability index stood at 113.4 in October, up from 110.8 the month before.
The index meant that a family earning the national median income of $35,353 had 113.3% of the income needed to qualify for a conventional mortgage covering 80% of the value of a median-priced house.
The improved affordability stemmed from a drop in the median housing price to $92,800 from $94,400 in September, a $114 rise in median family income and a decline in the amount of income needed to qualify for conventional financing.
The association’s index has not been higher since December, 1977, when it stood at 116. It reached 113.5 in September, 1988.