Even with home prices marching ever upward and mortgage rates bouncing back more than a full percentage point over last year, Capital Economics’ Paul Diggle insists housing affordability is still as good as most other experts say it is—if not better. Explaining that affordability measures “the burden of mortgage payments relative to income,” Diggle notes that the latest data from the National Association of Realtors shows that a family earning the median income has 178 percent of the income necessary to qualify for a mortgage on a median-priced home. At the same time, typical mortgage payments currently average 17 percent of median income, up from recent months but below the long-run average of 22 percent. In the firm’s latest US Housing Market Focus, Diggle notes that long-term trends show prices are up 15 percent below their trend level, with the ratio of Case-Shiller prices to disposal incomes per capital pointing to housing being about 16 percent below fair value. However, when comparing median household income to median home prices, Diggle says housing looks “no better than fairly valued.”
5 home selling mistakes with Team Thayer 1. Trying to sell your home yourself In this DIY era, the urge to try to sell your home yourself to save money can beckon like the smell of oven-fresh cookies at an open house. Resist. Working with a licensed agent helps ensure you’re not leaving money on the table as a result of an off-target listing price or a mistake in the many steps that lead to a final sale. Sell your sofa yourself online. List your home with a professional. 2. Picking the wrong Realtor Not all agents are equal. Just because your college buddy dabbles in the industry doesn't mean he’s the best guy to sell your home. You want experience. You want to work with an agent who has a depth of knowledge. Invite your buddy to the house-warming party. Find an agent who can truly perform. Do you research. Top Home Sales Mistakes 3. Pricing your home too high Sometimes it’s good to aim high. But when you’re setting a price for your home, it’s better to b