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Housing Affordability at its Highest Level in 35 Years
Housing affordability across the country is at its highest level in 35 years, as measured by the ratio of home prices to annual household income. That ratio has fallen to 1.6 from its peak at 2.3 in 2005. The historical average between 1989-2003 was 1.9. Continued positive economic numbers in manufacturing and regional business activity indexes coupled with modest good news on employment and low interest rates should allow this ratio to trend up towards the norm of 1.9 in the next 2-5 years.
For more information, please read this article from The Wall Street Journal.
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Tags: home affordability, WSJ
This entry was posted on Thursday, February 10th, 2011 at 10:37 pm and is filed under market trends. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.