Home price appreciation outpaced wage growth in 76 percent of the U.S. markets during the housing recovery, according to a new report released by RealtyTrac, which analyzed growth in average weekly wages compared to median home prices in 184 metro areas.
Between the second quarter of 2012 and second quarter of 2014, home prices have gone up 17 percent, while wages have only risen 1.3 percent, RealtyTrac’s study finds.
“Home prices in many housing markets across the country found a floor in 2012 and since then have rapidly appreciated, particularly in markets attracting institutional investors, international buyers or some other flavor of cash buyer not constrained by income as much as traditional buyers,” says Daren Blomquist, vice president at RealtyTrac. “Eventually, however, those traditional buyers will need to play a bigger role in the housing market for the recovery to maintain its momentum.”
Source: REALTOR® Magazine Daily News