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 46 - 60 of 103 results.
Sort by:

3005 S Mandy Circle, Mesa 85212, Arizona Skyline

  • $225,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,357
  • Lot size: 4,775
  • Year built: 2002
  • MLS #: 5777534
ARMLS Logo

1432 W Emerald Avenue, Mesa 85202, Mesa Coronado 2

  • $165,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,198
  • Lot size: 80
  • Year built: 1983
  • MLS #: 5794039
ARMLS Logo

1384 S Sabino Drive, Gilbert 85296, Gardens Parcel 5 Condominium Amd

  • $207,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,187
  • Lot size: 618
  • Year built: 2007
  • MLS #: 5793585
ARMLS Logo

511 N Olive Drive, Mesa 85203, Farnsworth Place

  • $225,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,248
  • Lot size: 7,619
  • Year built: 1970
  • MLS #: 5782205
ARMLS Logo

109 N Barkley --, Mesa 85203, Sherwood Mesa Unit 3 Amd Lts 42-52, 62-94

  • $225,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,550
  • Lot size: 6,545
  • Year built: 1961
  • MLS #: 5768979
ARMLS Logo

712 N Santa Barbara --, Mesa 85201, Village Park 2B Amended

  • $156,000
  • Bedrooms: 3, Baths: 2
  • Home size: 936
  • Lot size: 1,368
  • Year built: 1981
  • MLS #: 5792183
ARMLS Logo

546 W Dana Avenue, Mesa 85210, Vineyard Place Amd

  • $180,000
  • Bedrooms: 4, Baths: 2
  • Home size: 1,304
  • Lot size: 6,625
  • Year built: 1935
  • MLS #: 5781427
ARMLS Logo

4166 E Covina Street, Mesa 85205, Greenfield Park Unit 2 Lot 236-400 TR A

  • $205,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,136
  • Lot size: 5,906
  • Year built: 1986
  • MLS #: 5792872
ARMLS Logo

4725 E Brown Road, Mesa 85205, Sundance Villas

  • $215,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,422
  • Lot size: 5,000
  • Year built: 1987
  • MLS #: 5792231
ARMLS Logo

1259 S Quinn --, Mesa 85206, Sunny Mesa 2 Lot 1-129 TR A,B

  • $225,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,247
  • Lot size: 4,692
  • Year built: 1990
  • MLS #: 5793755
ARMLS Logo

8643 E Nopal Avenue, Mesa 85209, Lesueur Estates

  • $225,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,420
  • Lot size: 1,396
  • Year built: 2000
  • MLS #: 5793023
ARMLS Logo

1534 W 6th Drive, Mesa 85202, Alma Ests 4 Lots 241-274, 302-318

  • $199,950
  • Bedrooms: 3, Baths: 2
  • Home size: 1,128
  • Lot size: 6,242
  • Year built: 1960
  • MLS #: 5786268
ARMLS Logo

818 N 95th Street, Mesa 85207, Superstition village

  • $192,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,060
  • Lot size: 9,541
  • Year built: 1973
  • MLS #: 5793497
ARMLS Logo

9233 E Neville Avenue, Mesa 85209, Park Central AT Augusta Ranch Condominium 2ND Amd

  • $183,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,057
  • Lot size: 755
  • Year built: 2002
  • MLS #: 5792744
ARMLS Logo

120 N 95th Place, Mesa 85207, Frank Estates

  • $215,000
  • Bedrooms: 4, Baths: 2
  • Home size: 1,940
  • Lot size: 8,163
  • Year built: 1979
  • MLS #: 5785028
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 7/21/2018 4:28 AM MST.

Powered by WPeMatico