Posted on 03/25/2015 8:52:29 AM PDT by Kaslin
Existing Home Sales came in slightly below forecast in part to the ongoing supply issue. As a result, median home prices climbed 7.5% from last February to $202,600. This marks 36 straight months of home price increases as 1.8 million homes is equivalent to 4.6 months of demand.
However, another part of the problem has been a lack of demand. In fact, lending standards and mortgage interest rates have plummeted because demand has weakened.
Thus, heres the dilemma for renters: theyre pouring more money into a pad they dont intend to own. When the rate of pay increases, mortgages also increase in the same town.
Rent | Pay |
+15% | +11.2% |
In some places, the difference between pay and rent is even more obscene:
Moreover, I continue to say it's all about ownership from a business, to your home and investments.
What? Are they suggesting there's a connection between Price and Demand?! Heaven help us!
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