Friday, March 11, 2011

Housing Affordability at its Highest in Years

The median mortgage payment (principal and interest) in 2010 consumed less than 15% of family income in comparison to the historical standard of 25%.
•2010: 14.3%
•2009: 14.8%
•2008: 18.1%
•2007: 21.7%
•2006: 23.2%

Affordability - % of Income: The percentage of a median family’s income required to make mortgage payments (principal and interest) on a median priced home.
14.3% in 2010 is the lowest on record (since 1970). In 2003, it was at 19.1% due to significantly lower mortgage rates that year.
  • The highest price-to-income ratio ever recorded was in 1981 when it hit 36.3%. Interest rates during this year averaged 15.12%, the second highest on record after 1982’s 15.38%.
  • Here are the 10-Year Averages:

    •2000-2009: 20%
    •1990-1999: 20.3%
    •1980-1989: 28%
    •1970-1979: 19.5%
    •20-Year Average: 20.1%
    •40-Year Average: 21.9%
Smitha and Rahul Ramchandani are a licensed real estate Broker-Salesperson/Sales Representative Team with Keller Williams in New Jersey. They are Buyer Specialists and a Home Marketing Experts. You can reach Smitha and Rahul and their team online at:

Smitha and Rahul and their team specialize in North-Central New Jersey and all Morris County Towns such as
Boonton, Chatham, Chester, Convent Station, Denville, East Hanover, Florham Park, Hanover, Harding Twp., Mendham, Montville, Morristown, Morris Plains, Morris Twp., Mountain Lakes, Parsippany, Randolph, Rockaway, Whippany