According to statistics from U.S. research agency Moody's Analytics, the U.S. housing market by several years of falling prices, housing Afodabiriti (the 買Iyasu) to increase the region over the past year back to the level before the housing bubble that.

I tracked this statistic was the ratio of the average annual household income and housing prices in 74 local housing markets nationwide. According to the report, at the end of September last year Afodabiriti housing or return to average levels in 1989-2003, of which less than 47 regions or climbed. Among economists believed that the housing boom began in 2003.

During the housing boom, the relaxation of lending terms and speculation loan rates and home prices rise sharply, far exceeding the growth in household income was modest. Try a nationwide, the ratio of house prices to annual household income, that is the end of 2005 Afodabiriti ratio reached a peak of 2.3 times. In September last year but drops to 1.6 times the average ,1989-2003, significantly below 1.9 times. Chief economist at Moody's Analytics, said Mark Zandi, "If mortgages can be secured, but a good time to buy," he said.

The downside, however Afodabiriti percentage decline in house prices this fall, borrowers Underwater (underwater), they state that you are worth less than the loan balance that owns homes.

Many economists and housing analysts, house prices fell another 5% to 10% are expected to be finally bottoming out late this year or early next year. Housing demand is still weak, and with a sense of insecurity in the economic future of the buyer, but because they also tightened mortgage lending standards.

Currently, the value of housing loans of less than "under-value (underestimate)" regional states are expected to be in Detroit, Las Vegas, Atlanta and Phoenix. Even in these areas, because of the high percentage of borrowers in foreclosures and underwater housing, housing prices should fall still under pressure. Zandi said the "housing has been underestimated, more will be underestimated," he said.

Only to calculate the ratio of house prices on household income, and there is no measure of the Afodabiriti economists. To examine the relationship of home prices and rental costs. Typical house prices, rental price ratio is a reasonable level of annual cost to lease a house divided by the area or have been underestimated and is about 20. The rate across the country at the end of the last nine times the 14.85 ,1989-12-fold higher than the average of 2003.

Try a measure of rental cost ratio of two-income ratio of households in housing prices and housing prices, areas that are still overvalued in Seattle, Charlotte, New York, Portland (Oregon) have been others.


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