The above chart comes from Dr. Yun, the chief economist for NAR who came and spoke in Medford yesterday. His view is that the market across the country is now "over correcting" and has fallen below the historic home price to income ratios since the early 1980's. Below is a chart relating to mortgage payments to income:
According to Dr. Yun, the current middle income buyer is buying at record historical lows compared to their income, taking into account a buyers mortgage payment as a percentage of their income. That is fabulous news for buyers. The question is, how long will it last?
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