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 76 - 90 of 103 results.
Sort by:

6610 E University Drive, Mesa 85205, Silverstone Replat

  • $207,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,176
  • Lot size: 3,163
  • Year built: 2003
  • MLS #: 5784132
ARMLS Logo

9525 E Fairbrook Street, Mesa 85207, Oasis Verde LT 1-127 TR A

  • $224,999
  • Bedrooms: 3, Baths: 2
  • Home size: 1,392
  • Lot size: 6,957
  • Year built: 1985
  • MLS #: 5779707
ARMLS Logo

247 S Aaron --, Mesa 85208, Sienna Estates

  • $205,000
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,581
  • Lot size: 2,400
  • Year built: 2008
  • MLS #: 5761725
ARMLS Logo

5355 E Flossmoor Avenue, Mesa 85206, Arizona Valencia 2

  • $219,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,393
  • Lot size: 5,474
  • Year built: 1998
  • MLS #: 5789758
ARMLS Logo

1347 S Sabino Drive, Gilbert 85296, Gardens Parcel 5 Condominium Amd

  • $217,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,228
  • Lot size: 846
  • Year built: 2006
  • MLS #: 5781069
ARMLS Logo

1854 E Intrepid Avenue, Mesa 85204, Suntree Lot 1-228 TR A

  • $168,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,089
  • Lot size: 3,672
  • Year built: 1983
  • MLS #: 5770696
ARMLS Logo

507 N Lesueur Street, Mesa 85203, Casa LA Mesa 1

  • $169,990
  • Bedrooms: 4, Baths: 2.5
  • Home size: 1,500
  • Lot size: 1,982
  • Year built: 1967
  • MLS #: 5784309
ARMLS Logo

170 E Guadalupe Road, Gilbert 85234, Breckenridge Townhomes

  • $186,000
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,535
  • Lot size: 1,198
  • Year built: 1989
  • MLS #: 5729873
ARMLS Logo

6562 E Auburn Street, Mesa 85205, apache cove

  • $209,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,383
  • Lot size: 4,326
  • Year built: 2002
  • MLS #: 5771247
ARMLS Logo

8920 E Portobello Avenue, Mesa 85212, Arizona Skyline

  • $220,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,357
  • Lot size: 4,132
  • Year built: 2003
  • MLS #: 5782035
ARMLS Logo

45 E 9th Place, Mesa 85201, Park Center Place

  • $225,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,418
  • Lot size: 3,402
  • Year built: 1999
  • MLS #: 5761067
ARMLS Logo

1107 W Dragoon Avenue, Mesa 85210, Mesa Southwest Estates

  • $215,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,492
  • Lot size: 6,434
  • Year built: 1976
  • MLS #: 5785389
ARMLS Logo

213 S Valle Verde --, Mesa 85208, Signal Butte Ranch Unit 1

  • $216,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,320
  • Lot size: 6,103
  • Year built: 1999
  • MLS #: 5758829
ARMLS Logo

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

  • $209,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,318
  • Lot size: 6,826
  • Year built: 1973
  • MLS #: 5767977
ARMLS Logo

8802 E University Drive, Mesa 85207, Desert Heights

  • $215,000
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,556
  • Lot size: 3,541
  • Year built: 1998
  • MLS #: 5786137
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