The median price of existing home sales are still sizzling at 15.23% YoY
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Even if you got a 15% raise, which is not likely, one’s salary going up by 15% is not going to keep up dollar-wise with the price of housing going up by 15%. That large price on a home is going to result in a net dollar increase far above the dollar increase in wages.
Many decades ago, it was considered appropriate to spend about 25% of one’s gross income on housing. Now I’ve heard of banks qualifying people for a mortgage where the percentage spent on housing is approaching 50% of income.
I have no clue, but I wonder how many homes are currently not occupied and held by large investment companies.
Any clue?
I wish I could convey how insane that is. No driveway to speak of. Tiny lots. Nothing special.
Sales down 2 or 3 percent?
Good Lord, the things people cling to and try to pass off as panic porn.
As for investors buying up homes, it’s their risk and will be their loss if the market crashes. Buy at the sound of cannons, sell at the signing of the peace treaty.
Inventory is low so that affects purchases. People will not stop buying they will just switch to ARMs.
Wife and I called on two houses down in an area that is red hot as far as home sales. We have our home paid off and willing to add cash if needed, so we are not financing.
We were told by the two agents that sellers are not accepting any contingencies. We need to come with cash in the bank and have bank statements to prove it, all other offers rejected. The agents advised selling our house first and moving into a rental or with relatives, which means moving twice.
One of the agents we talked to said he had 23 offers over the weekend and the other agent said 18 during the middle of the week (hadn’t even gotten to the weekend).