“Home Prices Are Out Of Hand Again”

Home Prices Are Out Of Hand Again

U. S. home prices appear to be getting out of hand again as the gap between home price growth and household real income growth is close to where it was just before the housing collapse.
It’s also notable, and worrying, that the housing market is back in a ‘flipping frenzy’ with non-bank actors climbing aboard to fund the speculation.
Since 1999 year-end through 2015 home prices have risen 76% while household mean real income has grown less than 2%; the millennium-to-date gap between the two growth rates peaked at 84% during 2005-2006 and has risen back to 74% as of 2015 year-end. Gap at year-end 2007 was 75%.

This post was published at Zero Hedge on Sep 25, 2016.