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It was almost a year ago that I spoke to a joint session of the National Association of Realtors (NAR) and National Association of Home Builders (NAHB) where I warned that housing was getting increasingly unaffordable. Here is the chart I discussed showing home prices growing at around 2x wage growth. Nobel Laureate Robert Shiller of Yale and NAR Chief Economist Lawerence Yun were in attendance.
Just recently, NAR’s chief economist Lawrence Yun announced:
“The spring buying season is right around the corner and current supply levels aren’t even close to what’s needed to accommodate the subsequent growth in housing demand,” says Yun. “Home prices ascending near or above double-digit appreciation aren’t healthy – especially considering the fact that household income and wages are barely rising.”
Now, where have I heard that before?
Take San Francisco, for example. Or any city on the west coast.
The Fed’s third round of monetary stimulus (QE3) really sent home prices zooming, but not wage growth.
I am glad that I could be of service to the NAR and NAHB!
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