Home Price Appreciation Outpacing Wage Growth

Home Price Appreciation Outpacing Wage Growth

Short Sale Solutions

 

76% of the U.S. housing market in the past two years has had home price appreciation outpacing wage growth. Not only has it outpaced the wage growth, but it has also done so at an average of a 13 to 1 clip.

The main causes of this are the investors, international buyers or a different type of cash buyer that is not constrained by income. “Eventually, however, those traditional buyers will need to play a bigger role in the housing market for the recovery to maintain its momentum.”

“Among the 140 markets where home price appreciation has outpaced wage growth during the housing recovery, 45 metro areas (32 percent) with a combined population of 63 million had a median home price in December that required more than 28 percent of the median income for monthly mortgage payments — unaffordable by traditional standards.”

The California areas that were included in the 45 metro areas where the home price appreciation has outpaced the wage growth were Los Angeles, San Francisco, San Jose and San Diego.

 

Home Price Appreciation Outpacing Wage Growth

Home Price Appreciation Outpacing Wage Growth

 

 

 

 

 

 

 

 

 

Source: RealtyTrac.com

Home Price Appreciation Outpacing Wage Growth

Short Sale Solutions

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