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September 25, 2008


Tuscaloosa Houses

Good Post.
Interest information.
Look forward to reading more on you blog.
Best for Luck


"Price to income" and "rent cost vs own cost" need to go back to historical norms. Until that happens the market will remain unbalanced. Economic reality always prevails in the long term.

I'm curious if you have any data you can share on these issues???

Bret Chapman

Data is interesting and informative.

Watching from Sidelines

Income-to-Housing Price ratio's are still highly unbalanced Loudoun County, especially in the detached single family sector. Even with 'above average' income levels of Loudoun County, the current ratio is unsustainable with the reality of long term fixed-rate mortgages (with a down-payment) becoming the defacto standard once again. The historical (pre-2002) income-to-housing price ratio in Loudoun was slightly less than 1:3. Currently, the average detached single family home in Loudoun is priced at a ratio that is well over 1:5 and in many cases over 1:6.

Until this ratio becomes more balanced, the over-all real estate situation for Loudoun County is not going to change, especially in the detached single family home sector. Housing prices increased at a much higher pace than income levels during the housing ‘boom’. When all the dust settles in real estate market Loudoun will still probably be above average compared to most other markets in the country, however the current income-to-housing price ratio is still unrealistic. What we are experiencing now is a housing correction.


Wouldn't a more accurate indicator be income-to-mortgage, since that's really what determines what you're outlay is? A person in a $500K house with a 30% down payment has the same mortgage payment as a person with a $350K house and no down payment.

 Investment property

Good post.Thanks for sharing!

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