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 168 results.
Sort by:

1350 S Greenfield Road, Mesa 85206, Tesoro AT Greenfield Condominium

  • $223,000
  • Bedrooms: 4, Baths: 2.5
  • Home size: 1,750
  • Lot size: 1,669
  • Year built: 2008
  • MLS #: 5672618
ARMLS Logo

11265 E Caballero Street, Mesa 85207, Dave Brown AT Mountain & University

  • $207,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,338
  • Lot size: 5,375
  • Year built: 1998
  • MLS #: 5685614
ARMLS Logo

11556 E Flower Circle, Mesa 85208, Silverwood Amd

  • $223,900
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,576
  • Lot size: 5,125
  • Year built: 2002
  • MLS #: 5694481
ARMLS Logo

10430 E Abilene Avenue, Mesa 85208, Signal Butte Ranch Unit 1

  • $209,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,190
  • Lot size: 5,519
  • Year built: 1998
  • MLS #: 5698574
ARMLS Logo

221 S Olive --, Mesa 85204, Temple Villa

  • $223,899
  • Bedrooms: 4, Baths: 2
  • Home size: 2,284
  • Lot size: 7,200
  • Year built: 1950
  • MLS #: 5603437
ARMLS Logo

11348 E Elena Avenue, Mesa 85208, Parkwood East 2

  • $219,900
  • Bedrooms: 4, Baths: 2
  • Home size: 1,544
  • Lot size: 5,810
  • Year built: 2000
  • MLS #: 5693389
ARMLS Logo

3119 S Shelby --, Mesa 85212, Village AT Hawes

  • $207,500
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,444
  • Lot size: 4,300
  • Year built: 2004
  • MLS #: 5691552
ARMLS Logo

1762 W Pepper Place, Mesa 85201, Casa Mesa 2

  • $225,000
  • Bedrooms: 4, Baths: 2
  • Home size: 1,820
  • Lot size: 7,212
  • Year built: 1960
  • MLS #: 5698123
ARMLS Logo

1821 E Patrick Street, Gilbert 85295, Fincher Farms

  • $225,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,183
  • Lot size: 3,449
  • Year built: 2002
  • MLS #: 5693627
ARMLS Logo

4198 E Jasper Drive, Gilbert 85296, Gardens Parcel 5 Condominium Amd

  • $211,999
  • Bedrooms: 3, Baths: 3
  • Home size: 1,571
  • Lot size: 785
  • Year built: 2004
  • MLS #: 5654041
ARMLS Logo

5135 E Evergreen Street, Mesa 85205, Northpointe

  • $170,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,116
  • Lot size: 1,811
  • Year built: 1985
  • MLS #: 5698440
ARMLS Logo

1350 S Greenfield Road, Mesa 85206, Tesoro AT Greenfield Condominium

  • $222,500
  • Bedrooms: 4, Baths: 2.5
  • Home size: 1,750
  • Lot size: 1,792
  • Year built: 2008
  • MLS #: 5690185
ARMLS Logo

4313 E Harvard Avenue, Gilbert 85234, Towne Meadows Amd Lot 1-591 TR A

  • $210,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,725
  • Lot size: 6,830
  • Year built: 1990
  • MLS #: 5535454
ARMLS Logo

10919 E Catalina Avenue, Mesa 85208, Parkwood East

  • $215,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,679
  • Lot size: 5,500
  • Year built: 1999
  • MLS #: 5695971
ARMLS Logo

9817 E Birchwood Avenue, Mesa 85208, Crismon Cove Lot 8 9 10 17-25 Replat Lot 17-40

  • $135,000
  • Bedrooms: 3, Baths: 2
  • Home size: 967
  • Lot size: 4,034
  • Year built: 1995
  • MLS #: 5684368
ARMLS Logo
Copyright 2017 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 12/18/2017 11:34 AM MST.

Powered by WPeMatico