Home prices are low and so are interest rates. If you're a typical family in King County, now is the most affordable time to buy a house in many years.

The "housing affordability index" is calculated by the Washington Center for Real Estate Research at Washington State University. The index is based on interest rates, median home sale prices and incomes in the various counties.

The affordability score in King County is 127. "That is a record level," says Glenn Crellin, founder of the housing affordability index which was first calculated for Washington state in 1994. The 127 score means a typical family income in King County is about 27 percent more than it needs to manage payments on a median-priced house.

That also means it now might be cheaper to own than to rent. But According to Crellin there is still a fear that home prices will continue to fall.

"I think that there is some rational behavior in terms of those potential buyers, qualified potential buyers, who are opting to rent," says Crellin. One thing that could change a renter's mind is an increase in rents, which Crellin thinks is still possible for the next couple of years before new apartment inventory becomes available.

The third quarter statewide housing affordability index is at 160. Affordability scores are even better in Snohomish County, 171, and Pierce County, 185.

Tim Haeck, 97.3 KIRO FM Reporter

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