Home Prices Rebounding

Posted: December 11th, 2013 by Brad

“Home prices have come back strong,” according to veteran real estate consultant John Burns, CEO of a California firm that bears his name.

Burns illustrated his optimism in a recent blog that compared price-to-income ratios for 21 housing markets his company tracks. In 20 of those markets, including Seattle, the ratio of median home price to median household income now exceeds historical averages.

For Seattle, John Burns Real Estate Consulting found a current average of 5.8, up from the historical average of 4.1. San Francisco, at 11.1, had the highest ratio. Its historical average, using data since 1981, is 7.4.

In the U.S., the current price-to-income ratio is 3.7, up from the historical average of 3.1. Among the 21 markets in the survey, only Atlanta’s ratio of 2.0 dipped below its historical average of 2.1.

Burns noted mortgage rates remain near historical lows and said his firm remains optimistic on the future of home prices and housing construction, but acknowledged housing bargains are hard to find. He tempered his optimism by acknowledging it is founded more on “assumed low mortgage rates, solid economic growth, and low new home supply than it is on household income growth and solid demographics.”

John Burns Real Estate Consulting conducts housing market research, analysis and consulting for builders, developers, banks, lenders, investors and building product manufactures.

Leave a Reply

justrealseattle metropolitan Seattle Real Estate
FirstLast
Helps us to help you by knowing your neighborhood.
image description
Receive a
complimentary
Just Real Seattle

Home Packet.
Selling PacketBuying Packet
Yes, I'd like to receive your newsletter.

We strongly disapprove of spam. Please know that your
email address and information will be used with the utmost respect.

Close
justrealseattle top five deals
FirstLast
image description
Receive a
complimentary
Just Real Seattle

Interested in knowing what the last five top
residential real estate deals were in a specific neighborhood? Just specify your neighborhod of choice and we'll send you a complimentary report.

Yes, I'd like to recieve your newsletter.

We strongly dissaprove of spam. Please know that your
email address and information will be used with the utmost respect.

Close
justrealseattle metropolitan real estate stats
FirstLast
Helps us to know your neighborhood.
image description
Receive a
complimentary
Just Real Seattle
Real Estate
Stats Report.

We pride ourselves on being your "local economists." Providing you with current inventory and pricing data to help you make an educated and informed decision about the selling or purchasing your home.

Yes, I'd like to recieve your newsletter.

We strongly dissaprove of spam. Please know that your
email address and information will be used with the utmost respect.

Close
justrealseattle newsletter

Info you can use... Local Real Estate news,
lending info, home tips, property profiles, neighborhood happenings, local culture and more!

Close