[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f35nrsaj3ea8e":3,"$ffeh0925h8cuz":43,"$fbwk2pqjjqsc7":47},{"item":4,"previous":31,"next":37},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":13,"bodyImage":14,"isInfographic":15,"categories":16,"isVideo":15,"videoThumbnail":9,"videoSource":9,"publishedAt":29,"updatedAt":30},796,"the-real-news-about-housing-affordability","The 'REAL' News about Housing Affordability","Some industry experts are claiming that the housing market may be headed for a slowdown as we proceed through 2017, based on rising home prices and a potential jump in mortgage interest rates. One of the data points they use is the \u003Ca href=\"https:\u002F\u002Fwww.nar.realtor\u002Ftopics\u002Fhousing-affordability-index\">Housing Affordability Index\u003C\u002Fa>, as reported by the \u003Cem>National Association of Realtors\u003C\u002Fem> \u003Cem>(NAR).\u003C\u002Fem>","","blog","https:\u002F\u002Fsimplifyingmedia\u002Fwp-content\u002Fuploads\u002F2017\u002F04\u002F03165006\u002F20170406-Share-STM.jpg","Some industry experts are claiming that the housing market may be headed for a slowdown as we proceed through 2017, based on rising home prices and a potential jump in mortgage interest rates. One of the data points they use is the \u003Ca href=\"https:\u002F\u002Fwww.nar.realtor\u002Ftopics\u002Fhousing-affordability-index\">Housing Affordability Index\u003C\u002Fa>, as reported by the \u003Cem>National Association of Realtors\u003C\u002Fem> \u003Cem>(NAR).\u003C\u002Fem>\u003C!--more-->\r\n\r\nHere is how \u003Cem>NAR\u003C\u002Fem> defines the index:\r\n\u003Cblockquote>\u003Cem>“The Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national level based on the most recent price and income data.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\nBasically, a value of 100 means a family earning the median income earns enough to qualify for a mortgage on a median-priced home, based on the price and mortgage interest rates at the time. Anything above 100 means the family has more than enough to qualify.\r\n\r\nThe higher the index, the easier it is to afford a home.\r\n\u003Ch4>\u003Cstrong>Why the concern?\u003C\u002Fstrong>\u003C\u002Fh4>\r\nThe index has been declining over the last several years as home values increased. Some are concerned that too many buyers could be priced out of the market.\r\n\r\n\u003Cem>But, wait a minute…\u003C\u002Fem>\r\n\r\nThough the index skyrocketed from 2009 through 2013, we must realize that during that time, the housing crisis left the market with an overabundance of distressed properties (foreclosures and short sales). All prices dropped dramatically and distressed properties sold at major discounts. Then, mortgage rates fell like a rock.\r\n\r\nThe market is recovering, and values are coming back nicely. That has caused the index to fall.\r\n\r\nHowever, let’s remove the crisis years (shaded in gray) and look at the current index as compared to the index from 1990 – 2008:\r\n\r\n\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2017\u002F04\u002F20170406-STM-ENG.jpg\">\u003Cimg class=\"alignnone wp-image-35302\" src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2017\u002F04\u002F20170406-STM-ENG.jpg\" alt=\"The 'REAL' News about Housing Affordability | Simplifying The Market\" width=\"650\" height=\"488\" \u002F>\u003C\u002Fa>\r\n\r\nThough prices and rates appear to be increasing, we must realize that affordability is composed of three ingredients: home prices, interest rates, \u003Cstrong>\u003Cem>and income\u003C\u002Fem>\u003C\u002Fstrong>. And, incomes are finally rising.\r\n\r\n\u003Cem>ATTOM Data Solutions\u003C\u002Fem> recently released their \u003Ca href=\"http:\u002F\u002Fwww.realtytrac.com\u002Fnews\u002Fhome-prices-and-sales\u002Fhome-affordability-index-q1-2017\u002F\">Q1 2017 U.S. Home Affordability Index\u003C\u002Fa>. The report explained:\r\n\u003Cblockquote>\u003Cem>“Stronger wage growth is the silver lining in this report, outpacing home price growth in more than half of the markets for the first time since Q1 2012, when median home prices were still falling nationwide. If that pattern continues, it will help turn the tide in the eroding home affordability trend.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\n\u003Ch3>\u003Cstrong>Bottom Line\u003C\u002Fstrong>\u003C\u002Fh3>\r\nCompared to historic norms, it is still a great time to buy from an affordability standpoint.","\r\nCompared to historic norms, it is still a great time to buy from an affordability standpoint.","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2017\u002F04\u002F20170406-STM-ENG.jpg",false,[17,21,25],{"id":18,"name":19,"slug":20},5,"For Buyers","buyers",{"id":22,"name":23,"slug":24},11,"First-Time Buyers","first-time-buyers",{"id":26,"name":27,"slug":28},38,"Move-Up","move-up","2017-04-06T10:00:54Z","2017-04-04T10:48:31Z",{"id":32,"slug":33,"title":34,"featuredImage":35,"publishedAt":36,"contentType":10,"isVideo":15},795,"buying-this-spring-be-prepared-for-bidding-wars","Buying this Spring? Be Prepared for Bidding Wars","https:\u002F\u002Fsimplifyingmedia\u002Fwp-content\u002Fuploads\u002F2017\u002F03\u002F23153418\u002F20170405-Share-STM.jpg","2017-04-05T10:00:19Z",{"id":38,"slug":39,"title":40,"featuredImage":41,"publishedAt":42,"contentType":10,"isVideo":15},797,"why-millennials-choose-to-buy-infographic","Why Millennials Choose to Buy [INFOGRAPHIC] ","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2017\u002F03\u002F23121647\u002F20170407-STM-Share.jpg","2017-04-07T10:00:26Z",{"cover":44,"open":45,"shareSpread":46},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Magazine-original.png",[48,52,53,57,61,65,69,70,74,78,79,83,87,91,95,99,103,107,111,115,119,123,127,131,135,139,143,147,151,155],{"id":49,"name":50,"slug":51},1,"Uncategorized","uncategorized",{"id":18,"name":19,"slug":20},{"id":54,"name":55,"slug":56},6,"For Sellers","sellers",{"id":58,"name":59,"slug":60},7,"Foreclosures","foreclosures",{"id":62,"name":63,"slug":64},8,"Infographics","infographics",{"id":66,"name":67,"slug":68},9,"Home Prices","home-prices",{"id":22,"name":23,"slug":24},{"id":71,"name":72,"slug":73},34,"Senior Market","senior-market",{"id":75,"name":76,"slug":77},35,"Mortgage Rates","mortgage-rates",{"id":26,"name":27,"slug":28},{"id":80,"name":81,"slug":82},41,"For Sale by Owner","for-sale-by-owner",{"id":84,"name":85,"slug":86},42,"Featured","featured",{"id":88,"name":89,"slug":90},45,"New Construction","new-construction",{"id":92,"name":93,"slug":94},52,"Luxury \u002F Vacation","luxury--vacation",{"id":96,"name":97,"slug":98},53,"Rent vs. Buy","rent-vs-buy",{"id":100,"name":101,"slug":102},80,"Time-sensitive","time-sensitive",{"id":104,"name":105,"slug":106},81,"Outdated","outdated",{"id":108,"name":109,"slug":110},147,"Internal","internal",{"id":112,"name":113,"slug":114},148,"Do Not Autopost","do-not-autopost",{"id":116,"name":117,"slug":118},320,"Inventory","inventory",{"id":120,"name":121,"slug":122},321,"Agent Value","agent-value",{"id":124,"name":125,"slug":126},322,"Affordability","affordability",{"id":128,"name":129,"slug":130},323,"Buying Tips","buying-tips",{"id":132,"name":133,"slug":134},324,"Downsize","downsize",{"id":136,"name":137,"slug":138},325,"Economy","economy",{"id":140,"name":141,"slug":142},326,"Equity","equity",{"id":144,"name":145,"slug":146},327,"Forecasts","forecasts",{"id":148,"name":149,"slug":150},328,"Selling Tips","selling-tips",{"id":152,"name":153,"slug":154},339,"Expired\u002FWithdrawn\u002FCanceled","expiredwithdrawncanceled",{"id":156,"name":157,"slug":158},340,"Price It Right\u002FOverpricing","price-it-rightoverpricing"]