In mid 2005, home prices had climbed so much it took eight times the average person's after tax income to equal the national median home price. This ratio is usually around six.

Now that the median U.S. home price has crashed from $230,000 to $169,900, this "affordability ratio" has plunged below five... making homes more affordable than they have been in 40 years. The key here is actually having a job to pay for one of these cheap houses.

The linked article has an amazing chart showing this huge increase in affordability. Click the chart just below the "Multimedia" heading to view.

Read full article...