Home prices escalating faster than wage growth in 76% of US Housing Market


Posted April 9, 2015 by ChadSchernikau

In over 76% of U.S Market, home prices increasing fast as compared to wages. Home sales in Atlanta have increased by 11% in 2015. Homes for sale in Atlanta Suburbs are likely to become affordable and sales are expected to rise.

 
According to RealtyTrac’s recent findings, appreciation of home price over the past two years has grown faster than wage growth in 76% of U.S. housing markets. The study showed that home price escalation has outpaced wage growth across the country by a whopping 13-to-1 ratio. While median wages increased by 1.3% percent nationwide between the 2nd quarter of 2012 (when home rates touched the bottom and then began rising again) and 2nd quarter of 2014, there was a 17% increase in home prices.

According to RealtyTrac’s Vice President, Daren Blomquist, the housing markets where home prices crashed in 2012 appreciated later quickly, especially in markets attracting international buyers, institutional investors, or some other categories of cash buyers, who were not restrained by income, unlike the traditional buyers. Blomquist added further that over the last two years, those markets showed the biggest disconnect between wage growth and price growth, and are likely to see plateaued out home prices in 2015 until wages rise.

Experts believe that to help maintain the housing market its momentum of recovery, traditional buyers need to play a bigger role. According to Atlanta real estate brokers, low interest rates are another factor that has brought buyers back to the market. Some real estate experts predict that the Atlanta market is set to see a 7% growth in total households over the next five years, which is good news both for Atlanta real estate brokers and those looking for homes for sale in Atlanta suburbs.

What’s worrying in this scenario is how even towns, like Detroit (with a 12-to-1 ratio, according to RealtyTrac’s report), which continue to suffer from the recession and housing bust, have seen home prices outpace wage growth. But there’s hope for Atlanta real estate brokers and home buyers as a recent study predicts home sales in Atlanta to rise by 11% in 2015, as compared to 2014. This forecast is based on housing affordability and job growth, among other factors. Despite Atlanta being featured in the top 25 metros with the highest rate of home price appreciation (up by 38%) during the last two years ending in December 2014, many believe that the market will finally help those who would have otherwise moved out of the city to get more affordable accommodation.

With accommodation in the city as well as homes for sale in Atlanta suburbs are likely to become somewhat affordable, sales are expected to rise across the board in 2015, which many attribute to rising consumer confidence and job gains.
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Issued By Chad Schernikau
Website Total Atlanta Realty
Phone 770-874-6386
Business Address 3350 Atlanta Road, Smyrna GA 30080
Country United States
Categories Business
Tags atlanta new homes for sale , atlanta real estate brokers , homes for sale atlanta ga , homes for sale in atlanta suburbs
Last Updated May 8, 2015