Composite Index Ratio

The official composite housing affordability ratio has held at or above historic high's throughout 2009 ranging from a "low" of 155 to a high of just under 179. Remember, the index score of 100 means the average median household income exactly equals the median cost of the average home mortgage. In comparison, during the early 1980's the affordability index fell below 70 and remained negative for seven consecutive years.Bottom line - housing is more affordable than ever! Not only are interest rates near historic lows but the purchasing power of the median household income is stronger than ever. To purchase the average priced home, a family needs to make roughly $45,000 to $50,000...leaving ample discretionary income to cover other expenses or set aside funds for savings and retirement.