Fiserv is out with the Case-Shiller Home Price Insights reading…. This one is being dubbed “Home Prices Reach New Low, but Stabilization and Recovery Are in Sight”
The report shows that average U.S. home prices are now one-third below peak 2006 levels. The report shows that housing affordability continues to improve and now the ratio of monthly mortgage payment to median family income is the lowest level since 1994. Another issues is that almost half of U.S. metro markets are projected to see modest home price gains by the third quarter of 2012 and that the average home prices are expected to rise 3.8 percent by the third quarter of 2013.
As far as Housing Affordability: monthly mortgage payment for median price home fell to $640, down almost 45% from the housing bubble peak of $1,150 to the lowest level since 1994. Mortgage payments now account for only 14% of monthly median family income.
As noted, “Fiserv Case-Shiller projects that average U.S. prices will decline another 2.7 percent by the third quarter of 2012, compared to the year-ago period, before rising 3.8 percent by the third quarter of 2013.”
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