Housing "Within Reach": NAR
They are talking in code over at the "Voice for Real Estate." "NAR President Al Mansell, said the index shows there is a lot of flexibility in the market. 'There would have to be a significant rise in mortgage interest rates for affordability to decline to the point where the typical family could only afford a median-priced home. None of the forecast models show interest rates getting even close to that point, underscoring the soundness of housing as an investment for the foreseeable future.'"
It must be hard to talk about affordability, when prices are out of balance with family income. Especially when the membership doesn't want prices to fall to the affordable range.
"The association’s First-Time Homebuyer Affordability Index shows a typical first-time buyer household, with an income of $31,909, had 76.6 percent of the income needed to purchase a typical starter home in the first quarter with a 10 percent downpayment. The median starter home price was $160,500, during the first quarter; the typical first-time buyer could afford a home costing $122,900."