Alabama home prices, including those in Madison County, are more affordable than ever, according to a University of Alabama study released Friday.
The Alabama Housing Affordability Index for the first quarter reached 210.4, the highest number on record, according to the study.
The affordability index is defined as the ratio between a market’s median income and the median home-selling price. An index of 100 means a family earning the median income has just enough money to qualify for a loan for that market’s median-priced house.
According to the report, a Huntsville-area family earning the area’s median income of $67,500 has 2.27 times the income needed to qualify for a loan to purchase the median-priced home of $143,467, or an affordability index of 227. That’s a 16.7 percent increase in affordability from the previous quarter, which had an affordability index of 194.6.
The data are compiled from sales reports submitted to the center from reporting boards of Realtors around the state, and reflect sales of single-family homes, condominiums and townhomes. The report includes the Huntsville metro area, as well as Limestone and Morgan counties.
“This record-setting level is great news for Alabama consumers who are considering a home purchase,” said Grayson Glaze, executive director for the Alabama Center for Real Estate at the university. The increase was a result of falling interest rates, a drop in median home prices and an increase in median income for Alabama residents, Glaze said.
