by Wolf Richter • Feb 21, 2019
Fact is, home prices cannot outrun wages forever.
The market, if it’s allowed to, can fix the affordability problem that exists in many cities in the US by finding price levels were first-time buyers can afford to buy a home with the income they’re making. At its glacial pace, this is starting to happen in some markets, with sales volume dropping, and inventories rising, and sellers having to step down the aspirational ladder to make deals. In some of these markets, price levels have a long way to go before they make sense, where a household with a median income on the local scale can afford a median home. And there are now enough local housing markets that have turned south to where the impact is starting to creep into national averages.
Sales of “existing homes” – single-family houses, townhouses, condos, and co-ops – across the US in January dropped 8.5% from a year earlier, to a seasonally adjusted annual rate (SAAR) of 4.94 million homes, according to the National Association of Realtors, after having dropped 10.1% year-over-year in December and 8.9% in November. All three were the biggest year-over-year drops since May 2011, during the final throes of Housing Bust 1 (data via YCharts):
The Rest of The Story Below:
Peter is a Real Estate Broker at Professional Brokers Group (License No. 023000), covering the greater Short Sale area of Colorado.
Please fill out the contact form below if you wish for Peter to contact you.
[contact-form-7 404 "Not Found"]
Helping Short Sale Realtor home owners avoid foreclosure with a short sale.
Peter Janisch specializes in short sales in Short Sale Realtor. I am your Short Sale Realtor Short Sale Specialist Realtor and Short Sale Realtor loan modification and distressed property expert. This article and content is for general informational purposes and may not be accurate. This should not be taken as legal advice, technical or tax advice under any circumstance. Seek legal advise and representation in all legal matters.