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Old 08-11-2013, 05:51 PM
 
6,385 posts, read 11,886,305 times
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Quote:
Originally Posted by brown_dog_us View Post
Buyers decide on the price they can afford based off of the monthly payment they can afford.
Proper way to put it is what they can qualify for and if they have the documentation to qualify. What they can afford isn't really the issue anymore.
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Old 08-12-2013, 03:02 AM
 
Location: Denver, CO
1,627 posts, read 4,218,549 times
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I assumed what was meant was that buyers (hopefully) aren't buying more than they can afford monthly. We qualify for WAY more than I'd be comfortable spending per month given our income (and I'm not sure I understand why.)

Maybe it's just a sign of good credit, but somehow THAT worries me about the whole housing market.
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Old 08-12-2013, 05:57 AM
 
2,289 posts, read 2,946,364 times
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During the build up to the last bubble there were a lot of people who let the bank set their budget. I think a lot of people thought the bank wouldn't lend that much unless they could afford it.

Hopefully there isn't a lot of that happening this time.
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