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02-15-2009, 11:52 AM
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Location: 27609
525 posts, read 1,258,263 times
Reputation: 545
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Check out this article:
Pending home sales rise in December - Feb. 3, 2009
In particular, the following quote:
NAR's Housing Affordability index improved to 158.8 in December, up more than 29% year-over-year. That makes buying a home more affordable than any time since NAR started tracking the measure in 1970.
A household earning the median U.S. family income can now afford a home of $277,000, according to NAR. That's well above the national median home price, which was $198,600 in 2008.
Does that make anyone take pause at the fact that the general consensus seems to be that homes are still 20 to 30% (in general) overpriced? |
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02-15-2009, 11:57 AM
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17 posts, read 16,271 times
Reputation: 19
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NAR is one of the best resources for personal finance advice.
/sarcasm
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02-15-2009, 12:12 PM
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Location: Georgia, on the Florida line, right above Tallahassee
10,472 posts, read 15,264,058 times
Reputation: 6394
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Lawrence Yun, NAR's chief economist, in a written statement. "For a sustainable housing market recovery, and a sustainable economic recovery, we need a significant housing stimulus for qualified borrowers,"
If you were qualified...would you need a stimulus? Why would you need more money, if you have enough money...unless what you were buying was not priced correctly, or you were over extending yourself. Say it with me.....30 year loan. Now say "8,000 bucks." Now say "Oh! They're offering me 22 bucks a month to buy a home now!!! YESH!! YESH I WUV OOO $8000 DOLLARS!"
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02-15-2009, 12:16 PM
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Location: 27609
525 posts, read 1,258,263 times
Reputation: 545
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Quote:
Originally Posted by 70Ford
Lawrence Yun, NAR's chief economist, in a written statement. "For a sustainable housing market recovery, and a sustainable economic recovery, we need a significant housing stimulus for qualified borrowers,"
If you were qualified...would you need a stimulus? Why would you need more money, if you have enough money...unless what you were buying was not priced correctly, or you were over extending yourself. Say it with me.....30 year loan. Now say "8,000 bucks." Now say "Oh! They're offering me 22 bucks a month to buy a home now!!! YESH!! YESH I WUV OOO $8000 DOLLARS!"
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Um, we are qualified. We are just terrified of what's going on in the market right now and are traumatized from taking a loss on our recent sale. But for the time being, we are renting. A significant stimulus from the government might have made us feel better about "taking the plunge," as kind of a small safety net against all the current turmoil. But the 15k didn't pass, so we won't be buying any time soon, although we are COMPLETELY qualified. |
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02-15-2009, 12:49 PM
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Location: Salem, OR
15,274 posts, read 38,274,812 times
Reputation: 16565
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I think many people feel we are heading into a depression and as such are retracting their spending...focusing on living on one income, etc.
I probably have 8 potential buyers that are all waiting and watching. I imagine they will all dive in later this summer and fall.
Boocake you are among many.
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02-15-2009, 01:09 PM
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Location: Great State of Texas
86,052 posts, read 81,216,377 times
Reputation: 27707
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If median income is $50K then NAR is telling people they can affort 5-6X their salaries on a home ?
Nope..that is just asking for trouble. Get back to the 2.5-3X range and THEN homes become affordable.
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02-15-2009, 01:51 PM
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3,588 posts, read 6,571,414 times
Reputation: 1457
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Median income is always very misleading.
The average Median income in my zip code in Maryland is about 143K. The "median" home price is about 840K.
But the average AGI for individuals in this zip code is 117K.
So how are people affording these homes in my neighborhood?
Because median income just picks a certain point. There are wide ranges of income.
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02-15-2009, 01:55 PM
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16,433 posts, read 21,383,103 times
Reputation: 9606
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Quote:
Originally Posted by HappyTexan
If median income is $50K then NAR is telling people they can affort 5-6X their salaries on a home ?
Nope..that is just asking for trouble. Get back to the 2.5-3X range and THEN homes become affordable.
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Only if they can expect to keep their jobs. They can't be sure now. |
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02-15-2009, 02:24 PM
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Location: Great State of Texas
86,052 posts, read 81,216,377 times
Reputation: 27707
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Quote:
Originally Posted by aneftp
Median income is always very misleading.
The average Median income in my zip code in Maryland is about 143K. The "median" home price is about 840K.
But the average AGI for individuals in this zip code is 117K.
So how are people affording these homes in my neighborhood?
Because median income just picks a certain point. There are wide ranges of income.
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And if you do the math..that falls into to 5-6X salary to home..still to high of a debt ratio. |
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02-15-2009, 02:34 PM
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22,769 posts, read 29,476,558 times
Reputation: 14687
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Quote:
Originally Posted by boocake
Does that make anyone take pause at the fact that the general consensus seems to be that homes are still 20 to 30% (in general) overpriced?
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The Big Picture | NAR Housing Affordability Index is Worthless
^ This guy does not like the NAR housing affordability index. He makes some good points as to why it is not a useful metric. |
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