There has been much conversation over home values and when will we hit the bottom. Three years ago, just before the housing bubble began its rapid delfation, income to home value ratios were at a staggering 4.5. Current data shows that median selling prices for new and existing homes combined now equal 2.9 times median household incomes, nationwide. According to historical data, this is exactly the ratio that prevailed during the booming 1980's.
Although nerves over the economy could keep many potential homebuyers on the sidelines, this latest housing data suggest that home prices may actually be stabilizing.
A recent article by chief economist Irwin Kellner of Marketwatch, suggests that home prices are closer to stabilizing than any time in the past nine years. Combining that with attractive interest rates, unlike in the 80's (if you recall), maybe, just maybe, this is a GREAT time to consider a home purchase.
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