Existing Home Sales came in slightly below forecast in part to the ongoing supply issue. As a result, median home prices climbed 7.5% from last February to $202,600. This marks 36 straight months of home price increases as 1.8 million homes is equivalent to 4.6 months of demand.
However, another part of the problem has been a lack of demand. In fact, lending standards and mortgage interest rates have plummeted because demand has weakened.
Thus, here’s the dilemma for renters: they’re pouring more money into a pad they don’t intend to own. When the rate of pay increases, mortgages also increase in the same town.
| Rent | Pay |
| +15% | +11.2% |
In some places, the difference between pay and rent is even more obscene:
- New York rent +50% (last year) - paychecks up +8%
- Seattle rents surged 32% - paychecks up 15%
- Nashville rents climbed 19% - paychecks up 14%
Moreover, I continue to say it's all about ownership from a business, to your home and investments.