The
past five years have seen weak nominal price growth resulting in stagnate real prices. The local mortgage-debt-to-income ratio has remained steady throughout the past five years despite a national increase, indicating there should be little to no concern about an Memphis market bubble. Despite this fact, 2006 finished with the largest real price drop since 1990. Recently, Memphis 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 MEMPHIS PEAKS & TROUGHS Next >
|
Year |
|
|
|
|
Memphis Mortgage-Debt-to-Income Ratio |
National
Mortgage-Debt-to-Income Ratio |
2001 |
$124,300 |
4.5% |
$141,100 |
1.8% |
15.5% |
17.8% |
2002 |
$127,100 |
2.3% |
$140,600 |
-0.4% |
14.6% |
17.5% |
2003 |
$130,000 |
2.3% |
$141,200 |
0.5% |
14.5% |
18.3% |
2004 |
$134,500 |
3.4% |
$142,400 |
0.8% |
14.3% |
19.6% |
2005 |
$141,300 |
5.1% |
$145,500 |
2.2% |
15.3% |
22.6% |
2006 |
$141,900 |
0.4% |
$141,900 |
-2.5% |
14.6% |
21.7% |
|
