"Home prices since 2012 have increased 3 times the pace of wages". partial quote from below.
partial quote from:
A cheap mortgage is great, a cheap house is better
Although mortgages have become cheaper, houses haven't.
The S&P/Case-Shiller US National Home Price Index has climbed steadily over the past seven years. Since 2012, home prices have increased at about three times the pace of wages, Yun said.
"Homes are going to move out of the range of many buyers in terms of affordability, and maybe that is what we are already seeing," said Chris Rupkey, chief financial economist at MUFG.
Typically, when buyers remain on the sidelines, housing prices fall in response to lower demand. But that's not happening at the moment because the homes on the market are priced higher than where people are willing — or able — to buy.
The supply of new homes hasn't gone up enough for people in all income groups to take advantage of the lower mortgage rates.
No comments:
Post a Comment