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follow Patrick 2018 May 31, 9:59pm
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"The continuing run-up in home prices above the pace of income growth is simply not sustainable," wrote Lawrence Yun, chief economist for the National Association of Realtors, in response to the latest price reading from the much-watched S&P CoreLogic Case Shiller Home Price Indices. "From the cyclical low point in home prices six years ago, a typical home price has increased by 48% while the average wage rate has grown by only 14%." ...And demand may in fact be weakening. A monthly survey from Redfin found fewer potential buyers requesting home tours or making offers."April was the first time in 27 months that we saw a year-over-year decline in the number of customers touring homes," said Redfin's chief economist, Nela Richardson. "We believe this was driven by the low levels of new listings in March."
People like to debate me, but the math is as simple as that.
dramatically increase supply of housing. In areas that are already built to the max, this means converting mall space to condos, or failing commercial space to townhomes.
What I’ve seen is that the lower end homes are rising dramatically in price, with the ones in less desirable zip codes rising the fastest. To illustrate this, my zip rose 3% last year while a zip only 5 miles away in the same city rose 39%!!!
Lawrence Yun (the guy that replaced David Lereah as chief economist for the National Association of Realtors) thinks housing prices are too high? Impossible!
Yeah. Doesn't he know that his first and only job is to constantly say, "Now is a good time to buy!"
Unfortunately it’s not being built fast enough to release any of the pressure on demand.