The chart below, the Affordability Index of US residential property, comes courtesy of the New Observations on Real Estate, Mortgages & Life blog. The Index is computed by factoring in home prices, mortgage rates and income.
Let’s have an open thread and discuss in the comments section whether this represents a buying opportunity, or is it a question of fools rush in where wise men fear to buy? Click on “Comments” below the heading of this post and share with me your views on whether I should part with my South African rand for a residential property in some part of America.
Source: New Observations on Real Estate, Mortgages & Life, March 4, 2010
