Apparently, according to price-to-rent ratios (home price divided by average rent per month), homes in fourth quarter 2011 were the cheapest since 1987…but the ratios have risen since. In June, it was close to 23 vs. about 20.5 long term average.
Another comparison of affordability is comparing price to average annual household income.
For each 1% rate rise in interest rate, Buyer would need to see a 10% drop in home prices for equivalent payment.
So if you are buying a home, not for strictly investment gain, it’s a good time to purchase to hedge home price inflation and rising mortgage interest rates.