Latest Housing Affordability Index now Available; Second Quarter off Slightly from First Quarter, According to UA’s ACRE

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TUSCALOOSA, Ala. — The Alabama Housing Affordability Index results for the second quarter of 2009 showed a slight decrease from the record setting results of a 16-year high produced in the first quarter of 2009, according to the Alabama Center for Real Estate at The University of Alabama.

“The Alabama Housing Affordability Index for the first quarter of 2009 had broken all previous records for the highest level of home affordability in Alabama when it vaulted to 210.4 from the previous five-year-high of 182.5, which it had attained in the fourth quarter of 2008,” said G. Grayson Glaze, executive director of UA’s Alabama Center for Real Estate. “The extraordinary level in Alabama’s housing affordability continues to be great news for Alabama consumers who are considering a home purchase.”

The Alabama Housing Affordability Index in the second quarter of 2009 was 193.0, an 8.25 percent decline from the prior quarter. The National Housing Affordability Index also showed a slight reduction as it moved from 180.1 in the first quarter of 2009 to 177.6 in the second quarter of 2009, a 1.41 percent reduction.

A historical listing of housing affordability can be found at  http://acre.cba.ua.edu/affordability_index.php and a detailed explanation is available at http://acre.cba.ua.edu/pdfs/affordability_index/2009_2_Article.pdf