{"id":28619,"date":"2014-04-17T08:00:59","date_gmt":"2014-04-17T15:00:59","guid":{"rendered":"http:\/\/seattlebubble.com\/blog\/?p=28619"},"modified":"2014-04-17T08:53:24","modified_gmt":"2014-04-17T15:53:24","slug":"affordable-home-price-just-actual-median-price","status":"publish","type":"post","link":"https:\/\/seattlebubble.com\/blog\/2014\/04\/17\/affordable-home-price-just-actual-median-price\/","title":{"rendered":"Affordable Home Price Just Above Actual Median Price"},"content":{"rendered":"

As promised in yesterday’s affordability post<\/a>, here’s an updated look at the “affordable home” price chart.<\/p>\n

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 rates if they put 20% down and spent 30% of their monthly income.<\/p>\n

\"King<\/a><\/p>\n

The “affordable” home price dipped just a bit in March, but is still above the recent low point that was set in September. The “affordable” home in King County now sits at $429,341, with a monthly payment of $1,708.<\/p>\n

Here’s the alternate view on this data, where I flip the numbers around to calculate the household income required to make the median-priced home affordable at today’s mortgage rates, and compare that to actual median household incomes.<\/p>\n

\"King<\/a><\/p>\n

As of March, a household would need to earn $66,023 a year to be able to afford the median-priced $414,950 home in King County. This is up from the low of $46,450 in February 2012, but down from the recent high of $69,393 in August. Meanwhile, the actual median household income is around $68,000.<\/p>\n

If interest rates were 6% (around the pre-bust level), the “affordable” home price would drop down to $356,064—14% below the current median price of $414,950, and the income necessary to buy a median-priced home would be $79,611—17% above the current median income.<\/p>\n

With affordability right at the threshold like this, it seems unlikely we will see another year of rapid price increases, especially if interest rates continue to inch up.<\/p>\n","protected":false},"excerpt":{"rendered":"

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…<\/p>\n","protected":false},"author":2,"featured_media":28621,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"Affordable Home Price Just Above Actual Median Price","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[8,616],"tags":[28,704,61,223],"coauthors":[],"class_list":["post-28619","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stats","category-counties","tag-affordability","tag-big-picture","tag-fundamentals","tag-interest-rates"],"yoast_head":"\nAffordable Home Price Just Above Actual Median Price \u2022 Seattle Bubble<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/seattlebubble.com\/blog\/2014\/04\/17\/affordable-home-price-just-actual-median-price\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Affordable Home Price Just Above Actual Median Price \u2022 Seattle Bubble\" \/>\n<meta name=\"twitter:description\" content=\"As promised in yesterday’s affordability post, here’s an updated look at the “affordable home” price chart. 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