Homes are more affordable than they’ve been in the past 35 years

Not only have home values have fallen up to 70% in many key markets, making homeownership more accessible to the average buyer, interest rates are at historic lows, meaning that once a home is purchased, monthly payments are smaller than in our recent past.

Today’s median home buyer can expect to pay about 17% of his monthly gross income on his mortgage, compared to a 25% average since 1975. In the 1980's, when interest rates were dangerously near 20%, this would take up nearly 45% of a buyers gross monthly income. In comparison, today's rates are very low.

The main obstacle to homeownership these days, is getting a loant. Although nearly one-third of all home purchases in recent months have been all-cash, that leaves the majority of the market shares requiring financing. So, while it is more difficult for many homeowners to get into the market in today's economy, for buyers who have good credit and adequate savings, homes may never have been more affordable.