Oct

17

House Prices

Posted by cameron

October 17, 2007 |

I have been looking at house prices recently and came across some interesting statistics. The housing affordability index in the West and Northeast is downright depressing according to the National Association of Realtors recent data. That is even with house prices falling. Even with qualifying income at substantially higher rates for those areas, the median price of housing is considerably higher making the affordability seem impossible. It is difficult to see how young married couples can afford a home even when they combine incomes.

CNN/Money recently reported on median house prices by major metropolitan areas giving a blow by blow of falling house price data. What struck me were not the falling prices but the staggering actual median price in some areas of the country. For example: San Jose CA, $788K; Anaheim CA, $697K; Bridgeport CT, $470K; Honolulu HI, $620K; Los Angeles CA $590K.

I can’t see how young folks starting out today can actually ever hope to own their own homes. Getting started is always the toughest part but these runaway prices must be making it impossible for many. With housing affordability at rock bottom in some areas it’s no wonder house prices are correcting. Suddenly the Mid-West looks like home sweet home.


Comments

1 Comment so far

  1. wedding supplies on October 17, 2007 1:27 pm

    It would be interesting to see the ratios from 20 or 30 years ago to compare with todays numbers. We already know the trend is up but it would be interesting to see how steep the curve has been

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