More great news for home buyers in the Birmingham area… Alabama homes have never been more affordable! The Alabama Center for Real Estate recently took a look back over the last several months of Alabama's real estate market and accumulated data for the latest Alabama Housing Affordability Index.
The Affordability Index shows that as of Q4 2010, Alabama housing is at its most affordable levels in decades, while the Index itself has measured at its highest level in almost 20 years. The Index measures household income against median home prices, to come up with a specific number. As stated by ACRE in the study:
"The statewide housing affordability index is calculated as the ratio of the state’s actual median family income to the income needed to purchase and finance the state’s median priced home. An index number of 100 means that a family earning the state’s median income has just enough buying power to qualify for a loan on the state’s median priced, single-family home…"
The Housing Affordability Index was calculated at 219 for Q4 2010, which means that the average Alabama family (roughly $54,000 household income) had about twice the required income they would need to qualify for a median home price. Exciting news for those looking for homes in the Birmingham area.
To read the original article on the study from the Alabama Center for Real Estate as posted on AL.com, visit the post here.