ATTOM Data Solutions released a scary, but very misleading story last week on housing affordability as they cited that existing median home prices are up 11.4% nationally and wages are not keeping pace with the home price increases. Dear Clueless Ones at ATTOM-THEY NEVER DO!!! And wages don't need to increase as fast as home prices. Why?
First, no household spends 100% of their income on housing as the national average is about 25% to 30%. According to the Bureau of Labor Statistics as of August wages are up 5.3% over the last 12 months. Thus, home prices could have increased by 18% to 21% and homeowners have enough income to make the payment on a new home.
Second, mortgage rates have dropped by 1% in the last year which is equal to a 11% price drop. Whoops! ATTOM forgot about that. Don't ever let FACTS get in the way of your story. GEEZ!