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Twin Cities Housing Affordability Hits Record High

December 2008 Housing Affordability Index - Minneapolis/St. Paul

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 … [Read more...]

Twin Cities Affordability Hits Highest Level in Nearly 4 Years!

With the release of this week's Weekly Market Activity Report we find that the Twin Cities Housing Affordability Index hit a near 4-year high! The Housing Affordability Index takes into account interest rates, area median income, and median home sales price.  With both sales prices and interest rates falling recently, we find the Index has increased quite substantially in recent months. Interest rates remain well below 6% and there are a lot of new houses coming on the market this time of year.  While it … [Read more...]

Economy in Trouble: Bad for Stocks, Good for Housing

As the news about a slowing economy and fears of recession mount, the stock market has taken a huge hit, falling double-digit percentages in the last couple months, but housing is benefitting.  As money has been taken out of stocks, it has been flowing into bonds, which are historically a very safe investment.  When demand for bonds rises, that reduces the interest rate paid on those bonds.  As the bond market goes, the mortgage market follows. We've seen substantial improvements in rates in just the last … [Read more...]

Twin Cities Real Estate Affordability Hits 34 Month High

The Minneapolis Area Association of REALTORS released their weekly market report today with new Housing Affordability Index numbers for December 2007.  The HAI of 141 is the highest we've seen in the Twin Cities since February 2005... nearly 3 years ago.  Falling mortgage rates, with many brokers quoting under 6% for a 30-year fixed), and lower sales prices has improved affordability by over 10% in just 3 months! With mortgage rates and home prices down, the market is starting to look better for 1st time buyers … [Read more...]


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This website is a service of Aaron Dickinson of Edina Realty, a broker Participant of the Regional Multiple Listing Service of Minnesota, Inc.