Higher prices leave buyers out

Over the years I have joked about not being able to afford to buy my own house.  In Minnesota, the household income needed to qualify for a median-priced new home is $85,700.  The median is around 300K and to be honest, in many communities around the metro area 300K is entry-level.

Back when we bought our house we could not have afforded a 300K house. At the time interest rates were more than triple what they are right now. Prices are starting to cancel out those low rates in affordability calculations.

Here is a look at Ramsey county median home sales prices. Granted 2011 was not a stellar year but median prices peaked just before the crash at around $220K in 2006 the county.  It should be noted that home prices may not have reached their high for the year.

Rasey county home prices
Home prices in Ramsey County
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