2 Charts That Show the Truth about Home Affordability

2 Charts That Show the Truth about Home Affordability | Simplifying The Market

There is a lot of discussion about the current state of housing affordability for both first-time and move-up buyers, and much of the narrative is tarnished with a negative slant. However, the truth is that housing affordability is better today than at almost any time in our history.

The naysayers are correct in the fact that affordability today is not as good as it has been over the last several years. But, we must remember that home prices collapsed during the housing crash, and distressed properties (foreclosures and short sales) kept home values depressed for years. When we compare affordability to the decades that proceeded the crash, a different story is revealed.

Here is a graph of the National Association of Realtors’ Housing Affordability Index. The higher the graph, the more affordable homes are.

2 Charts That Show the Truth about Home Affordability | Simplifying The Market

We can see that affordability is better today than in the fifteen years prior to the boom and bust.

CoreLogic just published a report showing the National Homebuyers’ “Typical Mortgage Payment.” Here is a graph of their findings:

2 Charts That Show the Truth about Home Affordability | Simplifying The Market

It reveals that, though a ‘typical’ housing payment was less expensive in 2012 (remember distressed properties), it is currently less expensive than it was in 2000 and is still projected to be lower next year than it was in 2000.

Bottom Line

Mark Fleming, Chief Economist at First American, explained it best:

“While borrowing power for the potential home buyer has fallen relative to the low point of 2012, it remains high today and will remain high next year, relative to the long run average. If you don’t want to rent anymore and are considering becoming a homeowner, even if mortgage rates rise next year, your borrowing power will remain strong by historic standards.”

Wondering what’s on the market? Here’s a sneak peak…contact me if you would like a customized search!

Displaying 1 - 15 of 132 results.
Sort by:

645 E 10th Drive, Mesa 85204, Holmes Addition 2 Replat

  • $214,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,026
  • Lot size: 6,660
  • Year built: 1971
  • MLS #: 5759741
ARMLS Logo

1550 N Stapley Drive, Mesa 85203, Three Fountains OF Mesa 2 Amd Lot 31-42 65-94

  • $210,000
  • Bedrooms: 3, Baths: 3
  • Home size: 2,064
  • Lot size: 1,311
  • Year built: 1979
  • MLS #: 5760206
ARMLS Logo

1265 S Aaron --, Mesa 85209, Muirfield Village

  • $208,500
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,535
  • Lot size: 783
  • Year built: 2007
  • MLS #: 5752878
ARMLS Logo

222 W Brown Road, Mesa 85201, Northwood Park Lot 1-120 TR A-C

  • $170,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,343
  • Lot size: 967
  • Year built: 1981
  • MLS #: 5769204
ARMLS Logo

616 N 94th Way, Mesa 85207, Desert Saguaro Estates Unit 1

  • $220,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,158
  • Lot size: 8,002
  • Year built: 1978
  • MLS #: 5768903
ARMLS Logo

610 N Diane Circle, Mesa 85203, Palm Gardens OF Mesa

  • $198,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,833
  • Lot size: 9,725
  • Year built: 1961
  • MLS #: 5769132
ARMLS Logo

127 E Ivy Street, Mesa 85201, Pleasant Homes Sub Unit 1

  • $214,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,318
  • Lot size: 6,826
  • Year built: 1973
  • MLS #: 5767977
ARMLS Logo

6262 E Brown Road, Mesa 85205, EL Dorado Townhomes Amd Lot 1-92 TR A-J

  • $179,000
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,430
  • Lot size: 877
  • Year built: 1988
  • MLS #: 5752908
ARMLS Logo

170 E Guadalupe Road, Gilbert 85234, Breckenridge Townhomes

  • $199,000
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,430
  • Lot size: 1,194
  • Year built: 1985
  • MLS #: 5769101
ARMLS Logo

58 W 11th Avenue, Mesa 85210, Beall Park 2

  • $194,950
  • Bedrooms: 3, Baths: 2
  • Home size: 1,230
  • Lot size: 6,835
  • Year built: 1969
  • MLS #: 5769075
ARMLS Logo

443 S Grand --, Mesa 85210, Steward Add

  • $169,500
  • Bedrooms: 3, Baths: 2
  • Home size: 1,466
  • Lot size: 9,233
  • Year built: 1915
  • MLS #: 5768488
ARMLS Logo

623 S Grand --, Mesa 85210, Annex TO Stewart Add TO Mesa

  • $184,500
  • Bedrooms: 3, Baths: 2
  • Home size: 1,542
  • Lot size: 6,720
  • Year built: 1940
  • MLS #: 5768501
ARMLS Logo

6563 E Dodge Street, Mesa 85205, Dreamland Villa

  • $212,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,426
  • Lot size: 7,141
  • Year built: 1991
  • MLS #: 5740363
ARMLS Logo

5726 E Cicero Road, Mesa 85205, Velda Rose Estates

  • $190,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,505
  • Lot size: 7,350
  • Year built: 1962
  • MLS #: 5755413
ARMLS Logo

1432 W Emerald Avenue, Mesa 85202, Mesa Coronado 2 Amd

  • $158,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,198
  • Lot size: 81
  • Year built: 1983
  • MLS #: 5761756
ARMLS Logo
Copyright 2018 Arizona Regional Multiple Listing Service, Inc. All rights reserved.

All information should be verified by the recipient and none is guaranteed as accurate by ARMLS.

IDX Solution Provided by iFoundAgent.com

ARMLS Listing Data last updated 5/21/2018 3:36 PM MST.

Powered by WPeMatico