The One Crucial Data Point for Home Affordability
The Affordability Index Measures Overall Home Prices What is the Affordability Index? When it comes to understanding the residential real estate market in Orlando, Florida, one crucial number stands out: the affordability index. This index is a key indicator of how accessible the housing market is for the average buyer. It considers the median income of residents, the median price of homes, and prevailing mortgage rates to provide a snapshot of the market’s health and accessibility. How the Affordability Index Works In simple terms, an affordability index of 99% indicates that buyers are just 1% short of the income necessary to purchase a median-priced home. Therefore, anything above 100% is a positive sign for potential buyers. Market Insights from the Orlando Regional REALTOR® Association The Orlando Regional REALTOR® Association provides detailed market reports reflecting the condition of Orlando’s residential housing market. These reports include insights into: Interest Rates: In August 2024, interest rates reached a two-year low of 6.1%, down from 6.6% in July, offering relief for buyers and potentially impacting the affordability index positively. Inventory Levels: Inventory levels also play a significant role in the affordability index. In August 2024, the inventory was recorded at 11,511, up 3.2% from
