Party Like It's 1980: Mortgage Debt Ratios at 37-year Lows According to recently released statistics from the Federal Reserve, average mortgage payments as a percentage of disposal income have reached their lowest point since 1980. (See chart below.) This is great news for homebuyers! For example, most homebuyers in each of the prior three decades would have likely spent 30% - 50% more than today’s homebuyers on their mortgage payments when calculated as a percentage of their disposable income. This means that homes today are up to 50% more affordable than they were at various points throughout the past 37 … (4 comments)
housing affordability: THREE HOUSING TRENDS TO WATCH IN 2017
- 01/13/17 04:02 PM
1 - Housing Supply Housing supply measures how many months it would take to sell all the houses currently listed for sale, at the current pace of home sales. For example, if there are 600 homes currently listed for sale, and an average of 100 homes are selling each month, there would be a 6-month housing supply. This is because it would take 6-months to sell all the homes currently listed for sale.
Housing supply has been running below 6 months across the US since 2012. This indicates a seller’s market. In many parts of the country, buyers are competing with … (1 comments)
housing affordability: Fall 2016 Guide to House Prices
- 10/14/16 02:38 AM
House prices are determined by housing supply, housing demand and housing affordability. Housing Supply: What's the Outlook?Housing supply measures how many months it would take to sell all the houses currently listed for sale, at the current pace of home sales. For example, if there are 600 homes currently listed for sale, and an average of 100 homes are selling each month, there would be a 6-month housing supply. This is because it would take 6-months to sell all the homes currently listed for sale. A buyer’s market is anything more than 6 months. A seller’s market is anything less than 6 months. In … (2 comments)
;)
;)
