This is the biggest threat to the US housing market

This is the biggest threat to the US housing market

New York /
Aug.August 25, 2017 11:20 AM
 

Buying a house is becoming increasingly out of reach for many Americans, which is slowing down the strengthening housing market.

There’s been an inventory shortage across the country for some time, Bloomberg reported, which is pushing up prices. However, with wages going up at a much slower rate, the number of Americans who consider buying a home a good idea in the current conditions has dropped to a six-year low, the University of Michigan’s latest consumer sentiment survey shows.

“There’s a continuing misalignment between home-price growth and people’s income or wage growth,” said Lawrence Yun, chief economist at the National Association of Realtors, according to Bloomberg. “At some point, it’ll potentially choke off buyers.”

Although borrowing rates are at historic lows,  the rate of resales across the country dropped to its lowest pace for the year last month, according to data from the NAR.  [Bloomberg]Miriam Hall


Related Articles

arrow_forward_ios
The Georgetown house once owned by Julia Child (Zillow)
Georgetown home where Julia Child lived hits market for $3.5 million
Georgetown home where Julia Child lived hits market for $3.5 million
RE/MAX reaches record revenue of $91M with $25M net loss
Despite hot market and revenue growth, RE/MAX loses $25M
Despite hot market and revenue growth, RE/MAX loses $25M
Zillow selling half of iBought homes, will buy back $750M shares
Zillow selling half of iBought homes, will buy back $750M shares
Zillow selling half of iBought homes, will buy back $750M shares
(Getty)
Weekly home listings hit record low
Weekly home listings hit record low
Alexanders will be metaverse’s first luxury brokers
Alexanders will be metaverse’s first luxury brokers
Alexanders will be metaverse’s first luxury brokers
Richard Lampen and Howard Lorber
Public relations: What’s next for an independent Douglas Elliman?
Public relations: What’s next for an independent Douglas Elliman?
More contracts signed in the city for more expensive homes (iStock)
Manhattan condo signings jump 65% in November, led by priciest homes
Manhattan condo signings jump 65% in November, led by priciest homes
Skyline Tower in Long Island City and 200 East 83rd Street (Hill West, Rockefeller Group)
Manhattan logs busiest month for new development sales since April
Manhattan logs busiest month for new development sales since April
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...