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.
Courtesy of The Huntsville Times by Gina Hannah
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