U.S. Housing Affordability now highest on record

by John Wake on December 5, 2008

Source: Seeking Alpha

U.S. Housing Affordability

U.S. Housing Affordability

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One Up-Side: More Affordable Houses
12.30.08 at 2:34 pm

{ 8 comments… read them below or add one }

1

Craig J Frooninckx 12.05.08 at 3:54 pm

YEA!!! Now let’s get the buyers out there!

2

Brian 12.06.08 at 4:32 pm

too bad they are all licking their wounds after watching their net worth crater by more than 1/2 and are worrying about whether they will have a job tomorrow!

3

ks 12.06.08 at 9:03 pm

We have already seen that there are plenty of people who want to buy houses, even if the price is ridiculous, as long as the monthly payment looks doable at first. The whole issue is about loan availability. In the past, availability meant zero down, zero closing cost, teaser rates, and wishful thinking. Now….?

It would be wrong of me to say that fear is not important. People are fearful. This is not helping.

4

John Wake 12.07.08 at 2:33 pm

There are many people, particularly those looking in the (now) very low cost markets, who would be happy to pay the current prices but while prices continue to decline, there is not hurry to buy. I think there should be some urgency because once prices bottom out, sellers won’t have to under price as much anymore to sell a home, although the sub-market itself will be lower priced.

5

Tracy 12.09.08 at 11:11 am

I agreed with Brian that people got hurt and also worried about their jobs. some people said the house prices will go down to the level before 2003. any comments?

p.s I like John’s blog. it’s very helpful.

6

John Wake 12.09.08 at 12:41 pm

Some zip codes have already gone back to 2003 prices… or earlier!

7

Tracy 12.10.08 at 10:28 am

not the one where my husband and I consider to buy. we have made two offers and gotten rejected both on the properties that we would like to buy. not even have the opportunities to counter offer. Is the house really affordable right now? It’s hard to tell. Depends…

8

John Wake 12.10.08 at 3:03 pm

Tracy,

In Phoenix, housing is more affordable than in 2000 according to Elliot Pollack… on average.

Some areas are much more affordable than others, of course. Homes in the areas that are affordable are selling which makes the metro Phoenix look more affordable than perhaps it really is in some areas.

On those two homes that you didn’t get, it’s sounds like they were attractively priced since they received multiple offers.

Where are you looking?

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