Well, here we are again at another crossroads.
Our home prices have been going up steadily as we came out of the short sale and foreclosure real estate bust.
The problem we are seeing now is one we have visited before.. history repeats.
Here is a chart from NAR of the National Median Home Prices and Incom:
Sellers are not coming down on their asking price and buyers are not able to meet those prices due to household incomes for those who are just coming into the real estate market.
Across the nation real estate sales steadily increaesed into the spring season.
For United States buyers this is still a great time to buy a property because the interest rates are low.
We had expected an increase in interest rates but that was stopped when the dollar gained strength after the Britain exited the European Union. This helps the U.S. real estate market.
It does not help the real estate market in areas of our country like in South Florida where one out of every four sales is a foreign buyer.
Miami Beach is over saturated with new condominium developments because foreign buyers from Brazil and Argentina and other South American countries buy those condos. Developers did not anticipate the economic catastrophes in those countries happening now. The buyer pool is dwindling.
Across the nation the real estate prices are starting to outpace the household incomes. This means that at some point new first time buyers will not be able to afford the housing prices.
The Federal Reserve says that the net worth of Americans is $85 Trillion. That is almost double of what the net worth was in the year 2000.
The gap is between young people and older people. The net worth of the average older household is $210,500 compared to the young couple who has only $10,500. This is in large part due to home ownership as home ownership is part of that wealth.
Home ownership rates among baby boomers and the silent generation has been very steady. 80% of people who are over the age of 60 own a home.
But homeowners who are 35 years old fell to 34%. First time homebuyers is at its lowest point in 30 years.
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