According to RealtyTrac, home prices are rising 13 times faster than wage growth nationwide. From 2012-2014, median wages rose only 1.3% and median home prices climbed 17%. Low interest rates have helped keep buying an option. However, with wages not keeping pace with home prices in many of the markets analyzed, real estate experts believe this will result in another housing bubble.
On the flip side, homeowners who lost equity in their homes during the crash are likely rejoicing over the rapid increase. At the height of the crash, 13 million homeowners were underwater. Now the number is down to seven million.
According to the report, the markets with the highest rate of price appreciation compared to wage growth were:
• Merced, CA
• Memphis, TN
• Santa Cruz, CA
• Augusta, GA
• Palm Bay-Melbourne- Titusville, FL
First-time buyers often purchase starter homes, which according to RealtyTrac, have faced the biggest deficit in inventory. Rising home prices could be an incentive for more people to list their homes and ease up the tight inventory levels.
Click here to read more about rising home prices outpacing wages.
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.