The greatest threat to the housing industry | Bedford Corners Real Estate

 

Monday Morning Cup of Coffee takes a look at news crossing HousingWire’s weekend desk, with more coverage to come on bigger issues.

As Independence Day festivities slide into the rearview mirror, it’s time for a sobering look a the housing industry, and Sober Look takes just that, looking at why home price gains have slowed.

One of the reasons cited is the continuing weakness in wage growth. As they note, the latest data seem to indicate that in spite of the overall improvements in job creation, wage growth remains subdued – hovering around 2% per year over the past three years or so.

Click the graph below to enlarge.

“And wage growth is a key determinant in home price valuation. Merrill Lynch for example shows that current home prices may already be above where they should be, based on Merrill’s fair value index that is driven to a large extent by wages,” the report says.

 

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http://www.housingwire.com/blogs/1-rewired/post/30553-monday-morning-cup-of-coffee-the-greatest-threat-to-the-housing-industry

Robert Paul

Robert is a realtor in Bedford NY. He has been successfully working with buyers and sellers for years. His local area of expertise includes Bedford, Pound Ridge, Armonk, Lewisboro, Chappaqua and Katonah. When you have a local real estate question please call 914-325-5758.

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