chrisp, I know there are others on this board who have that info (about historical affordability measures). Just in case they don’t cough it up quick, here are some very rough traditional ratios:
1. Home price should be no more 2-3 times income
2. Downpayment (actually from the buyer, not a second lender) should be at least 20% for an owner-occupied home, and 30% for other homes.
3. Regular home debt payments (or was it all home payments, including home insurance?) should not exceed the smaller of (a) 28% of income, or (b) 33% of all debt service obligations (including car payments and credit card payments etc.)
Relying only on 2 and 3 is risky in a low interest rate environment, because low payments can coexist with prices in the stratosphere in such an environment. So if 2 and 3 look good, but 1 doesn’t, exercise more caution.
