Redfish Mark

NCC: Housing Affordability Is Back [Housing Tracker]

I'd quibble with NCC's economist DeKaser regarding his characterization of restoration of affordability in housing markets today. His view that valuations ("the difference between what a house should cost and its actual price) are a sound measure of affordability seems a bit tenuous, as defining what a house "should cost" today seems to be a bit of a challenge in most markets today.

Measures indexing home prices to median income measures in a market (Housing Affordability Index, Housing Opportunity Index) are better measures of true affordability. There are yet quite a few markets out there with affordability issues; for the most part they're easy to spot - high unsold inventories and declining sales.

Mark McGlothlin, CEO
Redfish Emerging Markets