Home Affordability Returns to Pre-Bubble Levels
In an increasing number of housing markets, affordability has returned to the levels they were at before the housing boom. The data for this analysis came from Moody’s Analytics and shows that housing affordability is reaching the average it was from 1989-2003 in 47 of the 74 markets studied. The reasons for home inflation are described as well as the current opportunities for buyers. The problem with this affordability trend is that decreasing prices hurt homeowners who are already underwater. Both overvalued and undervalued markets are described in the article.
SOURCE: The Wall Street Journal, 2/9/11
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