While the median sales price rose across the Phoenix area last month, drops in interest rates meant that affordability improved, according to a report from Phoenix REALTORS®.

The affordability index rose to 70 in October. That means that the median income covered 70% of the funds needed to afford the median home. For reference, the median home price was $475,000 last month.

“The lower interest rates make it financially feasible for more people to buy a house,” Board President Sheryl Bowden said in a press release. “The strong job market and new opportunities in technology and semiconductor manufacturing help raise wages and put greater Phoenix on track to return to its standing as an affordable housing market.”

Bowden added that further drops in interest rates will encourage buyers to return to the market. “A quarter-point drop announced by the Federal Reserve Bank on Nov. 7 will make a big difference in the type of home people can afford,” she said. “Sales should be increasing.”