It is April 25, 2017 and S&P/CoreLogic just released the home price indices for February.
The good news (for homeowners)? Home price growth keeps on rising, now at 5.8% YoY.
The bad news (for renters)? Earnings growth YoY for Production and Non-supervisory workers is growing at 2.34% YoY. That is less than half of home price growth.
Yes, there is a lack of available inventory and median sales price for existing homes is growing at a steady rate around 6.8% YoY.
And home listinga hit a new record low.
But WHERE at home prices growig the fastest? Seattle at 12.2% YoY followed by Portland at 9.7% YoY. The slowest? New York City and Washington DC at 3.2% and 4.1%, respectively. Followed by Cleveland at 4.5% YoY.
With home prices rising at over 2x earnings, housing in the US is becoming simply unaffordable.