It is hard to say that housing is still a great deal.
While mortgage rates remain near historical lows, home prices have come back strong. Thanks to strong price appreciation, the ratio of Median Home Price / Median Household Income now exceeds historical averages (since 1981) in 20 of the top 21 housing markets. See the chart below.
While we remain optimistic on the future of home prices and housing construction, our optimism is founded more on assumed low mortgage rates, solid economic growth, and low new home supply than it is on household income growth and solid demographics.