Alabama homes grew more affordable
Affordability of homes in the state grew in the first quarter of this year to its highest levels since early 2005.
The Alabama Center for Real Estate reported that the Alabama Housing Affordability Index increased to 169.4 in first quarter 2008 from 155.4 in the previous quarter, for a nearly 10 percent increase.
According to the center, this is the second consecutive quarter the index has risen.
The affordability index is calculated as the ratio of median family income to the income needed to purchase and finance a median priced home in the state, said the report.
The National Housing Affordability Index grew to 135.8 in the first quarter from 118.9 in the previous quarter, a more than 14 percent increase.
The report attributes the rise in affordability to the drop in interest rates and the rise in median income in the past two quarters.
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