The
past five years have seen weak nominal price growth resulting in small real price increases. During this period, the Houston mortgage-debt-to-income ratio has remained steady despite a national increase, indicating there should be little to no concern about an Houston market bubble. Despite this fact, 2006 finished with the first real price drop since 1996. Recently, Houston has become a paradox of positive affordability ratios with negative local consumer sentiment due in part to national psychology. Consequently, nominal prices may stagnate short term before returning to a long term growth phase.
SEE PRIOR HOUSTON PEAKS & TROUGHS Next >
|
Year |
|
|
|
|
Houston
Mortgage-Debt-to-Income Ratio |
National
Mortgage-Debt-to-Income Ratio |
2001 |
$123,400 |
6.9% |
$140,200 |
4.1% |
13.4% |
17.8% |
2002 |
$129,100 |
4.6% |
$142,800 |
1.9% |
12.9% |
17.5% |
2003 |
$133,000 |
3.1% |
$144,500 |
1.2% |
12.9% |
18.3% |
2004 |
$137,800 |
3.6% |
$146,000 |
1.0% |
12.8% |
19.6% |
2005 |
$145,600 |
5.6% |
$149,900 |
2.7% |
13.7% |
22.6% |
2006 |
$148,600 |
2.1% |
$148,600 |
-0.9% |
13.3% |
21.7% |
|
