These numbers are representative of someone with an income of 100K or so (I’m assuming PITI = 35% of income).
So, for this example, the buyer can choose between
A. renting a house and making new car payments
B. buying and driving their older, paid-off vehicle.
When buyers in income ranges of 60-70K can make this same choice (tougher because of the compressed tax advantage), it might be time to buy. I’m guessing we are about 20% overpriced before we hit that point.
