The
past couple of years have seen strong nominal and real price rebounding nicely from the price stagnation of 2001 - 2003. However, despite robust job gains and historically low mortgage rates, price growth has once again come to an abrupt end and resulted in an inflation adjusted price drop in 2006. This is due to local price affordability levels rapidly outpacing national price affordability levels as during the prior Northern California market bubble. Consequently, nominal and real prices should be expected to decline towards the historic level of mortgage debt servicing cost.
SEE PRIOR SAN JOSE PEAKS & TROUGHS Next >
|
Year |
|
|
|
|
San Jose
Mortgage-Debt-to-Income Ratio |
National
Mortgage-Debt-to-Income Ratio |
2001 |
$497,400 |
1.0% |
$564,000 |
-1.6% |
33.5% |
17.8% |
2002 |
$523,500 |
5.2% |
$578,300 |
2.5% |
32.4% |
17.5% |
2003 |
$533,800 |
2.0% |
$579,100 |
0.1% |
32.0% |
18.3% |
2004 |
$614,100 |
15.0% |
$649,900 |
12.2% |
35.3% |
19.6% |
2005 |
$747,600 |
21.7% |
$770,000 |
18.5% |
43.8% |
22.6% |
2006 |
$760,000 |
1.7% |
$760,000 |
-1.3% |
42.3% |
21.7% |
|
