Berkshire Hathaway Hawaii’s Home Affordability Index Helps Gauge Market Prices

Sponsored by Berkshire Hathaway HomeServices Hawaii Realty

The index compares Oahu’s median household earnings to qualifying mortgages on the median price for an average family home. The median household income is then divided by the qualifying income necessary to get a mortgage where the monthly payment was no more than one quarter of the monthly income.

Because the affordability index score for the second quarter of 2021 has dropped from the first quarter, the index indicates that it has become more difficult to purchase a home in Hawaii. However, historically low interest rates have created an opening in the market and allowed families to purchase their dream homes.

Berkshire Hathaway created this tool to help potential homebuyers and sellers gauge the economy and make the right decision about buying or selling their home. It will issue these reports quarterly so that buyers and sellers can stay up-to-date on the market on Oahu.

For more information: bhhshawaii.com