The Home Affordability Index (HAI) is at its highest recording ever in the metro Denver area. Just like it sounds, the HAI is a measure of how affordable homes are in a given location. It’s calculated by comparing the median price of a home in the Metro Denver market to the median worker’s income level, taking into account the current interest rate for a 30-year fixed rate loan.
What this means is that the median income earner can buy more house today than ever before. Why? Because home prices, while rising quickly, are still well below their peak prices of 5-6 years ago and interest rates are at never-before-seen historic lows. It’s interest rates that continue to make homes so wonderfully affordable.
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Have a great week, Drew