Twin Cities Housing Affordability Hits Record High
Just released from MAAR:
The Housing Affordability Index (HAI)�shot up 19 points to 180 thanks to the recent healthy declines in mortgage interest rates and a continued softening in home prices; the HAI has not been this attractive since we began tracking data in 1990.
What This Means to You
The dramatic fall in interest rates in recent weeks coupled with the substantial sales price reductions (mostly found in lender-mediated sales, which are foreclosures and short sales) has lead to an affordability index that we haven’t seen this high since the Minneapolis Area Association of REALTORS began tracking the figure 18 years ago!
This by no way means that every community and/or home has hit record affordability since some communities are extremely price stable in this housing correction but it is another indicator that points to a market that is quickly correcting to the strongest fundamental in the business: affordability.
NO ONE can tell you when we’ve hit a “bottom” in a market until the market starts to come back up. I personally bought a new home in August and though the rates are about .5% better today, I am still extremely happy with my purchase and my timing… it was the right time for me. Is it the right time for you?
