Affordable Home Price Climbs Above Median Price

Affordable Home Price Climbs Above Median Price

As promised in yesterday’s affordability post, here’s an updated look at the “affordable home” price chart. In this graph I flip the variables in the affordability index calculation around to other sides of the equation to calculate what price home the a family earning the median household income could afford to buy at today’s mortgage […]

Affordability Index Bounces Back Above 100

Affordability Index Bounces Back Above 100

Let’s take a look at how affordability is doing in the Seattle area after the last few months of changes in home prices and interest rates. So how does affordability look as of October? With home prices stagnating this fall and interest rates inching back down close to 4 percent, the affordability index moved back […]

Another Bubble? Affordability Only Sustained By Low Rates

Another Bubble? Affordability Only Sustained By Low Rates

Continuing our “Another Bubble?” series, it’s time to take a look at the affordability index. As King County’s median home price has surged from $405,400 in February to $468,000 in July, the affordability index has dropped from slightly above the long-term average to just below 100. An index level above 100 indicates that the monthly […]

Another Bubble? Home Prices Rapidly Outgain Incomes

Another Bubble? Home Prices Rapidly Outgain Incomes

Continuing the “Another Bubble?” series we began yesterday, let’s take a look at another housing bubble metric: home prices compared to incomes. For this post I’ll be using the Case-Shiller Home Price Index for the Seattle area (which rolls together King, Snohomish, and Pierce counties) and Bureau of Economic Analysis data on per capita incomes […]

Another Real Estate Bubble? Price to Rent Ratio Shoots Up

Another Real Estate Bubble? Price to Rent Ratio Shoots Up

With home prices approaching or even exceeding their 2007 peak levels in parts of the Seattle area, there has been renewed talk about whether we’re in another housing bubble or not. This week I’d like to go back to the same data I used in 2005 and 2006 to definitively recognize the bubble at a […]

Affordable Home Price Inched Up in May

Affordable Home Price Inched Up in May

As promised in this morning’s affordability post, here’s an updated look at the “affordable home” price chart. In this graph I flip the variables in the affordability index calculation around to other sides of the equation to calculate what price home the a family earning the median household income could afford to buy at today’s […]

Low Rates Keep Seattle Homes Almost Affordable

Low Rates Keep Seattle Homes Almost Affordable

Let’s take a look at how affordability is doing in the Seattle area after the last couple months of changes in home prices and interest rates. So how does affordability look as of May? Thanks to the spring surge in home prices, we’ve dropped back below the “affordable” level of 100. The index sits at […]