Home Price to Rent Ratio Still Below Bubble Territory

Home Price to Rent Ratio Still Below Bubble Territory

It’s been a while since we took a look at how rents are comparing to home prices in the Seattle area. Both home prices and rents have been climbing quite a bit in the Seattle area lately. We would expect this with a booming local economy, but if home price gains been significantly outpacing rent […]

Price to Income Ratio Back in Bubble Territory

Price to Income Ratio Back in Bubble Territory

It has been a while since we last looked at one of our primary housing bubble metrics: local home prices compared to incomes. In the next chart I am 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 […]

Low Rates Add $120K to the “Affordable” Home Price

Low Rates Add $120K to the “Affordable” Home 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 Kept Under Control by Low Rates

Affordability Index Kept Under Control by Low Rates

A reader pointed out that we haven’t looked at how the affordability index is doing in the Seattle area since late last year. Let’s update our standard charts. So how does affordability look as of April? Despite median home prices shooting up, falling interest rates that are back below 4 percent again have kept the […]

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 […]