They cite the numbers in "real terms", which would mean inflation adjusted:
> The average price of American homes, in real terms, is now the highest it's ever been
Of course, you really need to be looking at mortgage rates to understand housing affordability: http://www.freddiemac.com/pmms/pmms30.html
July 2021 average 30-year mortgage rate: 2.87% (with 0.7 points)
2008 12-month average 30-year mortgage rate: 6.03% (with 0.6 points)
To put that in perspective, a $500,000 mortgage (excluding down payment) would require a $2,073 monthly payment today, but a $3,007 monthly payment at 2008's 6% mortgage rates.
In other words: Houses are still way cheaper, in actual out-of-pocket terms for average people, than they were in 2008. Today's interest rates are way too low.
EDIT: Updated with 2008 numbers, thanks to comment below
> The average price of American homes, in real terms, is now the highest it's ever been
Of course, you really need to be looking at mortgage rates to understand housing affordability: http://www.freddiemac.com/pmms/pmms30.html
July 2021 average 30-year mortgage rate: 2.87% (with 0.7 points)
2008 12-month average 30-year mortgage rate: 6.03% (with 0.6 points)
To put that in perspective, a $500,000 mortgage (excluding down payment) would require a $2,073 monthly payment today, but a $3,007 monthly payment at 2008's 6% mortgage rates.
In other words: Houses are still way cheaper, in actual out-of-pocket terms for average people, than they were in 2008. Today's interest rates are way too low.
EDIT: Updated with 2008 numbers, thanks to comment below