US Homes Have Never Been More Unaffordable

Jon Alternative Media, Blogosphere, Economy, Market Commentary

Just under a year ago, US home prices finally surpassed their prior all time highs, one decade after the 2006 bubble…

… and haven’t looked back since. Which, all else equal, would be great news for America, where the bulk of middle-class wealth is not in the stock market contrary to conventional wisdom, but in its biggest, and most illiquid asset-cum-investment: one’s home.
There is just one problem: while house prices are once again hitting new all time highs every month, household incomes have failed to keep up; in fact, as the Political Calculations blog shows, in the past two years there has been a distinct trend in home affordability, or lack thereof.
As the first chart below shows, starting in September 2015, the TTM average median new home sale price in the U. S. has been rising at an average rate of $906 per month.
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This post was published at Zero Hedge on Oct 28, 2017.