Housing Market Bubble Alert! Housing Market Home Affordability Update

An update for home affordability and how this relates to a housing market crash. Home affordability still 33% higher than in 2006 and higher than any year prior to 2008. Homes are still historically affordable and not likely to lead to a real estate crash or a housing market bubble.

Some of the reasons home are affordable historically. One is mortgage interest rates are still at historic low levels. The other is wages are the highest they have been in nominal dollars and the savings rate the last two years also set record highs. Add in inflation and real estate being a hedge against inflation and that still shows that home prices could still go up 50% before they reached the point at which the 2006 housing market crash happened.

This update is national data and not just for Las Vegas.

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