Ivory Homes Announces National Association of Realtors® Housing Affordability Index Results
SALT LAKE CITY, Utah – Ivory Homes, a leading provider of pre-built and custom-built homes for sale in Utah, is reporting the Housing Affordability Index results from the National Association of Realtors® (NAR) for the first quarter of 2012.
“As we’ve mentioned before, homes are more affordable than they’ve ever been — whether you’re looking for homes in Salt Lake City, throughout the state of Utah, or anywhere in the United States,” said Ty Perry, sales consultant for Ivory Homes. “But now the Housing Affordability Index from the National Association of Realtors® is backing up these claims.”
The NAR’s Housing Affordability Index is basically a number that shows the relationship between the average home price, the average family income and the average interest rate. An index score of 100 means that the average family can afford the average home. Whereas a higher affordability index means greater household purchasing power.
“The index has been increasing since 2009,” said Perry. “But for the first quarter of 2012, the index hit 205.9. This is the first time the affordability index has surpassed the 200 mark since reporting began in 1970. This means the average family is now able to qualify for more home than ever before.”
So what does a score of 205.9 actually mean in terms of real numbers? As an example, it means that a family earning just under $61,000 could afford a home costing $325,500 — which is more than double the national median existing single-family home price of $158,100.
“Affordability is so high because interest rates are so low,” said Perry. “But this affordability could change overnight. In fact, it is expected that both home prices and mortgage interest rates are expected to edge up a bit as the year progresses.”
Though prices and rates are expected to rise, the NAR believes housing affordability will still remain very favorable for the remainder of 2012. It is projected that the housing affordability index will set an annual record of 191.
Given the record-breaking status of the Housing Affordability Index, Ivory Homes is certainly continuing to encourage home ownership. “Right now is an incredibly unique time to buy, not only just homes in Salt Lake City, but homes for sale in Utah overall,” said Perry. “With prices and interest rates still ridiculously low, now is the time to take advantage.”
Ivory Homes has been Utah’s largest homebuilder since 1990. For more information, contact Ivory Homes’ corporate office, 978 Woodoak Lane, Salt Lake City, UT 84117, call 801-747-7000, visit the website at www.ivoryhomes.com or check out the YouTube channel at www.youtube.com/ivoryhomes.
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