According to the Minneapolis Area Association of REALTORS newest figures, the Housing Affordability Index is up 4.5% in November 2007 versus November 2005, from a value of 132 in 2005 to 138 today.
While this is an improvement from much of 2006 and 2007, it is still substantially lower than the index’s record of 160, set in 2003. The index’s low of 122 was set in 2006.
The Housing Affordability Index formula measures housing affordability for the Minneapolis/St. Paul market. An HAI of 138 means the median family income is 138% of the necessary income to qualify for the median priced home using a 20% down payment, 30-year fixed mortgage.