Wage growth vs Prices

Case-Shiller reports increase in home price growth

Experts say rising home prices won’t stop anytime soon

https://www.housingwire.com/articles/43182-case-shiller-reports-increase-in-home-price-growth

“The S&P CoreLogic Case-Shiller National Index is up 6.3% in the 12 months through February 2018. Year-over-year prices measured by the National index have increased continuously for the past 70 months, since May 2012.”

“Over that time, the price increases averaged 6% per year,” Blitzer said. “This run, which is still ongoing, compares to the previous long run from January 1992 to February 2007, 182 months, when prices averaged 6.1% annually. With expectations for continued economic growth and further employment gains, the current run of rising prices is likely to continue.”

“There is no let-up to rising home prices,” said Lawrence Yun, National Association of Realtors chief economist. “The Case-Shiller Index and National Association of Realtors median home price both show gains of roughly double the average wage growth.”

So go buy a home. It’s completely logical for someone to spend 40-50% of their after tax income for a place to live. Maybe you should go lease that 7-series BMW too? Maybe your an Escalade person? Tesla model X?