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Affordability still remains the hot ticket for home sales and across the nation home prices are much better now than they have been in years. An important part of affordability is the ratio between income levels compared to home sale prices and today these numbers are improving almost daily.
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Meanwhile, 22 metros have flipped from being unaffordable to becoming affordable in that same time frame." Here is a graph showing the Affordability Index compared to the 40-year average: The graph shows that housing affordability is better now than at any other time in the last forty years, except during the housing crash last decade.
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We keep hearing that home affordability is approaching crisis levels. While this may be true in a few metros across the country, housing affordability is not a challenge in the clear majority of the country. In their most recent Real House Price Index, First American reported that consumer "house-buying power" is at “near-historic levels."
Consumer house-buyer power has been greater than the actual price of a home since 1991. And, the spread is larger over the last. Even though home prices are increasing rapidly and are now close to the values last seen a decade ago, the actual affordability of a home is much better now.
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(It is now $300, given the salary hike at his new job.) Despite this, Mdm Chan insists, they are managing. It’s still a.