Housing affordability was the most favorable on record in 2010.

By
Real Estate Agent with Edwards Real Estate Group, Inc.

Definition: The percentage of a median family’s income required to make mortgage payments (principal and interest) on a median priced home.

Unprecedented interest rates, low mortgage rates as well as the first-time buyer tax credit continue to contribute to improving affordability conditions.

The median mortgage payment (principal and interest) in 2010 consumed less than 15% of family income in comparison to the historical standard of 25%.
2010: 14.3%
2009: 14.8%
2008: 18.1%
2007: 21.7%
2006: 23.2%

14.3% in 2010 is the lowest on record (since 1970).  In 2003, it was at 19.1% due to significantly lower mortgage rates that year.
The highest price-to-income ratio ever recorded was in 1981 when it hit 36.3%. Interest rates during this year averaged 15.12%, the second highest on record after 1982’s 15.38%.

10-Year Average:
2000-2009: 20%
1990-1999: 20.3%
1980-1989: 28%
1970-1979: 19.5%
20-Year Average: 20.1%
40-Year Average: 21.9%

Source: KW Vision Speach 2011

To find the value of your home, visit: http://www.davidjedwards.com/free-home-evaluation.asp
To search the MLS database of homes for sale, visit: http://www.davidjedwards.com/search-for-homes.asp

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