Home Buyers in a Squeeze...

Home buyers in a squeeze, from the Arizona Republic,
reports that skyrocketing prices have made Valley resale homes harder to
afford than any time since the beginning of the last decade. The Arizona
Real Estate Center at ASU just released its latest affordability index for
new and resale homes. The resale index fell to 84 in 2005, down from 114 in
2004. The new home index dropped from 102 to 80 during that same time. The
index is based on the value of 100 being the level where a typical buyer
can afford a median-priced home at current interest rates and household
income. Numbers higher than 100 signify increased affordability and those
below 100 suggest the opposite. The new figures have implications for
everyone associated with the Valley's real estate market, from agents to
owners to businesses worrying if their employees can find a place to live.
"If you are trying to buy a home, you have to be careful about what you are
doing," said Jay Butler, director of the Real Estate Center at ASU. "If you
own a home, you don't have an affordability issue. If you are trying to
sell this area as a place for a new company, then you may have some serious
issues."
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