The following article echoes the conclusions Don Pelgrim, CEO of Wilshire Finance Partners, reached in his recent presentation to the American Association of Independent Investors (AAII), where he stated jobs and wages continue to impact the affordability of residential housing in California notwithstanding firming property values and low interest rates.
Affordability Has Nothing to do with Home Prices or Rates -RealtyTrac
“A real estate market that should be flying high is instead a real estate market that is faltering,” according to Brian Mushaney, Executive Vice President, Data Solutions, for RealtyTrac. Writing in the current issue of RealtyTrac’s Housing News Report he points to a market which he says should be a buyer’s paradise in many ways, with property values well below historic affordability levels, banks with tons of cash to loan, interest rates near their all-time lows, and foreclosures abating.
“So why,” he asks, writing, “have home sales stalled in recent months? It is an issue of affordability he says, but not the way we usually think about it.
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