• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Logo
  • Login / Register
  • 916.221.0886
  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • Home
  • Search
    • Homes For Sale
    • Open Houses
    • Featured Listings
  • Sellers
    • Sell With Us
    • Free Home Valuation
    • Our Seller Guide
    • Why Sellers Should Prioritize Buyer Representation
  • Buyers
    • Home Buying
    • Mortgage Calculator
    • Preferred Vendor List
  • Communities
  • About
    • About Us
    • Meet The Team
    • Awards & Recognitions
    • Testimonials
    • Boutique vs. Big-Box
    • Join Our Team
  • Contact
Home > How to Get a Better Perspective on Affordability

How to Get a Better Perspective on Affordability

February 7, 2019 by jleonardi

How to Get a Better Perspective on Affordability | Simplifying The Market

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 | Simplifying The Market

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.

Filed Under: BLOG POSTS

Primary Sidebar

New ListingEmail Alerts

Sign Up Today

What's MyHome Worth

Get Your Value

Categories

  • BLOG POSTS
  • PRESS/MEDIA

ClientTestimonials

"After looking for a home to buy for nearly ten years Frank Leonardi was able to see me through the process. He was very professional and knowledgeable about the type of property and area I was interested... continued"
- B. Goshia
View All

Follow Us
Happy 4th of July! Today we celebrate freedom, uni Happy 4th of July! Today we celebrate freedom, unity, and the spirit of our great nation. Wishing you a safe and joyful Independence Day filled with fireworks, family, and gratitude for the land of the free and the home of the brave. 

#FourthOfJuly #IndependenceDay #ProudToBeAnAmerican #USA #leonardirealestate
JUST LISTED in Empire Ranch! 🏡 Immaculate 2 bed JUST LISTED in Empire Ranch! 🏡
Immaculate 2 bed, 2 bath second-floor condo in the desirable gated Madrone community! Features include high ceilings, updated lighting, granite kitchen with stainless steel appliances, cozy fireplace, and a private balcony. Includes in-unit laundry + attached garage! Listed at $439,500
Enjoy resort-style living with a pool, gym, and clubhouse.
📍 Minutes to Folsom Lake, Life Time Fitness, El Dorado Hills, and Hwy 50!

LINK IN BIO - LINK IN BIO - LINK IN BIO

📩 DM for details or a private tour!

John Leonardi #01737387
Leonardi Real Estate

#FolsomRealEstate #EmpireRanch #MadroneCondo #JustListed #FolsomLiving #LeonardiRealEstate
I’m excited to share that voting is now open for I’m excited to share that voting is now open for the 21st Annual Style Magazine Readers’ Choice Awards — the region’s largest and longest-running contest!

Thanks to your incredible support, I’ve been honored as a Best Real Estate Agent for the past 9 years. This year, we're going for two titles:

🏆 Best Real Estate Agent – John Leonardi
🏆 Best Real Estate Team – Frank & John Leonardi – Leonardi Real Estate

🗳️ Voting is open from May 15 – July 15, 2025
✅ You must vote in at least 10 different categories in the region for your ballot to count

If you’ve appreciated the work we’ve done for you, your family, or your referrals, I’d be incredibly grateful for your vote in both categories.

Click here to vote:
👉 https://fedh.stylerca.com/category

Thank you again for your ongoing trust and support — it means the world!
🏡 New Listing in Camino! Discover this stunning 🏡 New Listing in Camino!
Discover this stunning 4,104 sq ft custom home in Audubon Hills—perfectly set on 3 private acres in the heart of Apple Hill! 🍎

Featuring 4 bedrooms, 3.5 baths, soaring vaulted ceilings, rich wood flooring, and a spacious open layout. The lower level includes a private entrance with a full suite—ideal for guests, multi-gen living, or a game room.

Enjoy peaceful views from the expansive deck, an oversized 3-car garage with RV/boat access, and recent upgrades throughout (newer roof, Bosch HVAC, updated leach field + more!).

📍Located just an hour from Sacramento or Tahoe
📶 High-speed internet available
🚗 Ample parking & circular driveway

This is a rare retreat that offers comfort, space, and incredible value. Listed at $760,000 

🔗 View full details & photos:
https://www.leonardirealestate.com/listings/camino/

📲 Call/Text for a private tour!
John Leonardi, Broker #01737387 #dreamhome #sierranevadaliving #countryliving #escapetothemountains #privateretreat #peacefulliving #applehill #caminoca #mountainretreat
🇺🇸 Happy Flag Day! Today we honor the symbol 🇺🇸 Happy Flag Day!
Today we honor the symbol of our nation’s unity, freedom, and resilience. The American flag represents the values that bring us together, past, present, and future.

🇺🇸 #FlagDay #StarsAndStripes #ProudToBeAnAmerican #leonardirealestate
  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest

Footer

logo
Bay Area Realty Group | Leonardi Real Estate
luxury homes certification logo

Join OurVIP Network

Get Exclusive Deals First! Unlock coming soon & off-market properties, investment opportunities, and insider market insights. Sign up now for VIP access—straight to your inbox!

  • This field is for validation purposes and should be left unchanged.

DRE 01737387  •  sitemap   •   admin   •   ©2025 All Rights Reserved  •  Real Estate Website Design by IDXCentral.com