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[Solid Masonry] Is It Possible The Three Factors That Most Impact Real Estate Today Are Affordability, Affordability And Affordability?

[John Philip Mason is a residential appraiser with 20 years experience and covers the Hudson Valley region of New York. He’s a good friend and a true professional who believes that all appraisers need to have a macro-economic perspective in order to be effective. His post in this week’s Solid Masonry reflects his lack of interest in links, except those between housing and affordability.] …Jonathan Miller


Disclaimer: Please forgive me this week, I decided to write about the issue of affordability and forgo backing up my observations with links to well written articles. While I think most would agree that I’m simply stating obvious facts, I thought it would be interesting to compile a list of these items. All too often we’ve seen these issues discussed independently, but I think their full weight is to be realized in their collective impact on the greater issue of affordability.

We’ve all been told the three factors that most impact the value of real estate are location, location and location. But now it would seem affordability is under attack, and from just about every direction. Consider that during the past year or two we have seen:

Add to this some potential mine fields, such as:

After considering all of the above, it becomes clear the cost to participate in the home ownership market has been forced upwards from many directions. In addition, the changing undercurrents in the mortgage industry may only compound the affordability issue. As such, it should come as no surprise that today’s market is a little over-inflated. Yes, I said it, over-inflated.

Because after all, isn’t it possible the three factors that most impact real estate today are affordability, affordability and affordability?