Let’s have another look at home affordability in King County. First up, the affordability index. The affordability index is based on three factors: median single-family home price as reported by the NWMLS, 30-year monthly mortgage rates as reported by the Federal Reserve, and estimated median household income as reported by the Washington State Office of…
Tag: fundamentals
Big Picture 2011: Case-Shiller HPI Rate of Increase
It’s time for another Big Picture Week on Seattle Bubble, in which we’ll examine a number of local home price factors and economic fundamentals from a higher level than we usually do. By eschewing our usual focus on month to month changes and taking a step back to look at trends over the last few…
Seattle Home Prices Average 4% Annual Gains Since 1990
I updated my chart that compares the gains in Seattle’s Case-Shiller Home Price Index with consistent annual increases at various levels, and noticed that for the first time since 1997, home prices dropped below the level of 4% annual gains since 1990. I’ve also added a plot of the Consumer Price Index for the Seattle…
Low Rates Make WA Real Estate Appear Undervalued
I was going through some older posts recently, looking for some ideas of data sets to update, when I came across this November 2007 post written by Deejayoh: Washington Real Estate: 40% overvalued? Here’s a brief excerpt from his post: I ran across this very interesting analysis of the California real estate market by Goldman…
King County Affordability at Levels Not Seen Since 1998
After spending a couple days looking at incomes and home prices, let’s throw interest rates into the mix as well with an updated look at affordability. As a brief refresher, here’s the formula for calculating the affordability index: While we discuss the broad county-wide affordability trends, don’t forget that you can also play around with…