US home prices climbing steadily

[Omaha Steve]

Source: AP

WASHINGTON (AP) — U.S. home prices increased at a solid clip in April, led by double-digit jumps in Denver and San Francisco.

The Standard & Poor's/Case-Shiller 20-city home price index rose 4.9 percent in April from 12 months earlier, roughly the same annual pace as March, S&P Dow Jones Indices said Tuesday.

Strong job growth and low mortgage rates have prompted greater demand for housing, boosting home values. The continued gains are at roughly double the pace of wage growth, but current levels appear more manageable than the double-digit home price increases seen during parts of 2013 and 2014.

"These gains are probably sustainable," said David Berson, chief economist at Nationwide Insurance. "They're not so rapid as to cause worry that people won't be able to afford to buy the average home."

FULL story at link.


Read more: http://bigstory.ap.org/article/4f5c5c26489443ffb205e59571a685b8/us-home-prices-climbing-steadily-amid-stronger-demand

[Amishman]

1. home ownership slips away from yet more people

'The continued gains are at roughly double the pace of wage growth' - this is a huge problem, especially for would-be first time home owners.

[olegramps]

6. It isn't all good news, especially for retired people who own their home.

The jump in home prices means an increase in taxes for many home owners plus an increase in insurance costs. The only benefit that I can see is if you are looking to downsize. The thought of moving for me at my age is more than I want to contemplate. I can't believe the stuff and more stuff we have accumulated.

[BlueJazz]

2. "They're not so rapid as to cause worry that people won't be able to afford to buy the average home.

Sure, since most wages are rising at a "Double Digit" rate. Keep them prices rising...we'll be right back where we were a few years ago.

On Edit: Yep, it does help me since mine is paid for but I feel for those people who are entering the market.

[jwirr]

3. Well that is good news and bad news. Good for the owner and seller. Not so great for the low

income buyer.

[jtuck004]

4. And ownership decreasing...soon you can just ask the Master where you are allowed to live.

We have seen this before - remember the lying thieves of 2007? They just ceded their chair to someone else...

http://www.doctorhousingbubble.com/renting-in-feudal-america-renting-new-american-dream-incomes-study-data/


A slow and steady drumbeat to a lower income nation, with little islands of wealth among great need.

[LibDemAlways]

5. In my area of suburban So. Cal., a 40 year old

3bedroom/2bath tract house carries a pricetag of 600K plus. And that's cheap compared to the SF Bay area.

When my husband and I were married back in '73, we were able to save enough to buy a small condo within 3 years and sold the condo to buy a house three years after that. All on a modest income.

Of course back then builders were still building affordable housing for middle class families. Today in this area it's all unaffordable McMansions. Affordable housing is a thing of the past.

Suspect that many Millennials will be renters for life.

[Kelvin Mace]

8. I can't fathom that much for a house

where I live (middle of NC) $600,000 would get you a 3 story house with 3000+ sf on a couple of acres of land.

[TheCount_]

9. I know A LOT

of renters. I think it might get worse for succeeding generations.

[sadoldgirl]

7. There is another point to it

and I see it in my area. With the much overpriced
houses comes the increase of property taxes, which is
hard for older and poorer people to swallow.

[melm00se]

10. Can't win here at DU

Prices drop and folks complain about being underwater.
Prices increase and folks complain about being priced out of the market.

tell me, what is an acceptable (realistic) scenario?

[former9thward]

11. Whenever average wages and home prices deviate a bubble is created.

And bubbles pop. Average family income is not going up. It is steady if anything. When home prices rise at double digit rates it means that people are using more and more of their income on housing. They can only spend so much before they pull out. And then housing prices come cascading down and we are back in another 2007 crash.

Flipping houses programs are becoming popular once again on cable and the radio. That is a signal we are reaching a bubble.