Housing more affordable than ever before

The National Association of Realtors says its measure of housing affordability reached an all-time high last quarter, as prices, mortgage rates and family incomes converged. At the same time, bidding wars are becoming more common in Phoenix, and driving up prices. The real estate agent's trade group says the only thing missing from the equation is a return to normal lending standards. NAR bases its index on median housing prices, median family incomes and average mortgage interest rates and says with a median income of just under $61,000, a buyer could afford a home costing $325,000 in the first quarter, more than double the national median existing single-family home price of $158,000. The median mortgage payment for a median priced home would take just 13.5 percent of gross income. NAR predicts home prices and mortgage rates will rise this year, but it says housing affordability will remain favorable, with its housing affordability index likely to hit an annual record in 2012.

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