Are Boston condos overvalued? Not according to this stat
Boston Condos for Sale and Apartments for Rent
Alternative headline: “Four areas so affluent that home prices and incomes are completely disconnected.”
Comparing the median sale price to house-buying power
Comparing the median sale price to house-buying power in all top 50 markets reveals that 4 markets are considered “overvalued”. “Overvalued” is defined by a market where the median sale price > house-buying power. And Boston condos for sale don’t fall into that category. Most markets are still “undervalued.”
Home Buying Power
House-buying power is calculated by using a city’s annual median household income, assuming that a household spends one-third of their income on a mortgage, assuming a 5% down payment, and considering the current (Jan. 2022) 30-year, fixed-rate mortgage rate.
