Denver Realtor

Every Home Deserves a KILTED Closing

  • Buy
    • Mortgage Rates and Payment Calculator
    • Renting vs. Buying
    • Relocation
    • Rent-To-Own
    • Resources for Buyers
  • Sell
    • Request Home Valuation
    • Divorce and Selling Your House
    • Resources for Sellers
  • Invest
    • Rental Rate Analysis
  • Communities
    • Denver Neighborhoods
    • Search Denver Homes
    • Search Arvada Homes
    • Search Aurora Homes
    • Search Broomfield Homes
    • Search Centennial Homes
    • Search Englewood Homes
    • Search Greenwood Village Homes
    • Search Highlands Ranch Homes
    • Search Lakewood Homes
    • Search Littleton Homes
    • Search Lone Tree Homes
    • Search Parker Homes
    • Search Westminster Homes
    • Search Wheat Ridge Homes
    • Salida Real Estate
  • Blog
    • Buying a Home
    • Selling a Home
    • Real Estate Market
    • Denver Housing Market
    • Denver Housing Prices
    • Financing a Home
    • Real Estate Investing
    • Renting
    • Homeownership
  • About
    • Kilted Closings (photos)
    • Why Choose Scott
    • Client Testimonials/Reviews
  • Contact
You are here: Home / Buying a Home / Look at This Perspective on Housing Affordability

Look at This Perspective on Housing Affordability

February 7, 2019

How to Get a Better Perspective on Affordability

Headlines spotlight the fact that buying a home is less affordable today than it was at any other time in more than a decade. Those headlines are accurate.

Understandably, buying a home is more expensive now than immediately following one of the worst housing crashes in American history. Over the past decade, the market was flooded with distressed properties (foreclosures and short sales) selling at 10-50% discounts. There were so many that this lowered the prices of non-distressed homes in the same neighborhoods. As a result, mortgage rates were kept low to help the economy.

Prices have since recovered. Mortgage rates have increased as the economy has gained strength. This has impacted housing affordability. However, it’s necessary to give historical context to the subject of affordability.

Two weeks ago, CoreLogic reported on what they call the “typical mortgage payment”. As they explain:

“One way to measure the impact of inflation, mortgage rates and home prices on affordability over time is to use what we call the ‘typical mortgage payment.’ It’s a mortgage-rate-adjusted monthly payment based on each month’s U.S. median home sale price. It is calculated using Freddie Mac’s average rate on a 30-year fixed-rate mortgage with a 20 percent down payment…

The typical mortgage payment is a good proxy for affordability because it shows the monthly amount that a borrower would have to qualify for to get a mortgage to buy the median-priced U.S. home…

When adjusted for inflation, the typical mortgage payment puts homebuyers’ current costs in the proper historical context.”

Here is a graph showing the results of CoreLogic’s research:

How to Get a Better Perspective on Affordability

As the graph indicates, the most recent calculation remained 28% below the all-time peak of $1,275 in June 2006. That’s because the average mortgage rate at that time was 6.68%. As seen in the graph, both today’s typical payment and CoreLogic’s projection for the end of the year are less than it was in January 2000.

Bottom Line

Even though home prices are appreciating at a slower rate, home affordability will likely continue to slide. However, this does not mean that buying a house is an unattainable goal in most markets. It is still less expensive today than it was prior to the housing bubble and crash.

Begin Your Own Home Search:

house shoppingAre you ready to begin searching for your Denver area home? It’s a great time, we have more inventory than we did the past few years. I encourage you to explore homes currently on the market to get a feel for the types of homes, locations, and price points. My Denver real estate blog has loads of useful information for home buyers trying to figure out what they want to do. And of course, please call me, or send me an email / text, to discuss your next home.

Also, if you are considering new construction, remember the builder’s real estate agent represents their best interest, not yours. There is no cost for you to have an agent represent you. In fact, I may be able to help you save money and negotiate for extras which the builder may not let you know about.

Get My List of Hot Properties »

Considering Selling Your Home?

for sale blur house bgIf you are looking to sell a home in the Denver area, I encourage you to work with a real estate agent who has the experience and knowledge to provide an accurate market comparison so you can determine the right asking price. The market is more balanced now and your asking price is an important component of your selling strategy. Contact me today to learn how your home stacks up against the competition and how we can position your property to sell quickly and for a fair price.

Get A Quick Home Valuation »

SHARE THIS:

  • Click to email a link to a friend (Opens in new window) Email
  • Click to print (Opens in new window) Print
  • Click to share on Pocket (Opens in new window) Pocket
  • Click to share on Facebook (Opens in new window) Facebook
  • Click to share on X (Opens in new window) X
  • Click to share on LinkedIn (Opens in new window) LinkedIn
  • More
  • Click to share on Reddit (Opens in new window) Reddit
  • Click to share on Tumblr (Opens in new window) Tumblr
  • Click to share on Pinterest (Opens in new window) Pinterest
  • Click to share on Mastodon (Opens in new window) Mastodon
  • Click to share on Telegram (Opens in new window) Telegram
  • Click to share on WhatsApp (Opens in new window) WhatsApp

Related

Topic: Buying a Home, Real Estate

SUBSCRIBE: Receive a Weekly Digest of This Blog in Your Email Inbox

/ ( mm / dd )
(No SPAM. Just good content. Safe unsubscribe anytime.)

DENVER REAL ESTATE & HOUSING BLOG

scott rodgers realtor blogHi, I'm Scott Rodgers, a native of Denver and a professional Realtor serving the metro Denver metro area. In short, I help people buy and sell homes, and have built a bit of a reputation wearing a kilt to my clients' closings.

Follow this daily blog on the Denver housing market and real estate related topics for highly relevant information for home buyers and sellers.

And should you or someone you know be in the market to buy or sell a home, please reach out to me to discuss what you are looking to do. I adapt to all my clients' needs and strive to provide you with The Peak Results.

Find Your Next Home

Diamond Realtor Award 2023, Denver Metro Association of Realtors - Scott Rodgers

❖ Certified Luxury Home Marketing Specialist with GUILD recognition
Luxury Award 2023 - CHLMS Guild

#1 Agent in Denver by RateMyAgent - Scott Rodgers

2020-2023 Five Star Real Estate Agent - Scott Rodgers, Denver

Nextdoor.com Favorite Agent Cory-Merrill Denver

Denver Real Estate Blog

  • The 5-Year Rule for Home Prices July 15, 2025
  • The Advice First-Time Homebuyers Need To Hear July 14, 2025
  • The Truth About Where Home Prices Are Heading July 10, 2025
  • Selling and Buying at the Same Time? Here’s What You Need To Know July 9, 2025
  • Should You Buy a Vacation Home? July 8, 2025
  • What You Should Know About Getting a Mortgage Today July 7, 2025
  • Think No One’s Buying Homes Right Now? Think Again. July 3, 2025
  • Why Big Investors Aren’t a Challenge for Today’s Homebuyer July 2, 2025
  • Top 5 Reasons To Hire a Real Estate Agent When You Sell July 1, 2025
  • Multi-Generational Homebuying Hit a Record High – Here’s Why June 30, 2025

Search Homes on Your Mobile

Visit www.ThePeak.com from your mobile phone and click the button below to get the best mobile MLS app and keep track of your favorite homes (VIP access code: 68FC82E3)
Download App

Giving Back

Join my team on Kiva.org and help communities grow and prosper at the most foundational level: the individual, the family, the local business. It’s our way of spreading goodwill around the world. Participating is easy and involves small $25 loans.

  • Loans: 440+ (99th percentile)
  • Total Lent: $11,000+
  • Countries: 77+

Scott Rodgers

Real Estate Broker, REALTOR®, MRP
Brokers Guild Real Estate
303-242-8831 (m)

 

  • Email
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube
the peak home source with scott rodgers - denver realtor

Why Choose Scott Rodgers as your Realtor »     Write a Review / Recommend Scott »

Search homes in Denver, Centennial, Littleton, Lakewood, Englewood, Greenwood Village, Aurora, Lone Tree, Highlands Ranch, Parker, Wheat Ridge, Arvada, Westminster, Broomfield.


Copyright© 2016–2025 · The Peak Home Source with Scott Rodgers · Denver Realtor · MLS · Buy · Sell · Rent · Denver Real Estate Blog · Privacy · ToS

Marketing efforts are not intended to solicit properties listed under written agreement with licensed real estate brokers.
Website content is for informational purposes only. For professional advice or service, engage a licensed real estate broker, loan originator, attorney, or CPA under written contract.
Part of the real estate listing content on this website comes from the IDX program of REcolorado.