Think Home Prices Are Too High? Affordability Is Still At All-Time Bests
Posted by Florida Realty Marketplace on
Homes Are Very, Very Affordable Right Now
Affordability is at one of its highest points in a generation.
It just doesn't seem like it.
Home prices are up nearly 6% since last year, and analysts predict another 5% jump in 2017. Plus, mortgage rates are at levels not seen since 2014.
Surely this can't be an affordable housing market.
Except that it is.
That's the conclusion from First American, a real estate title insurance provider and creator of the First American Real House Price Index (RHPI). The index -- one of the few of its kind -- considers not only nominal home prices, but also income levels and mortgage rates, too.
The result: home prices are 33% more affordable today than they were at the height of the "bubble" in 2006.
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