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"Home Prices Are Out Of Hand Again"

• zerohedge.com by Christopher Maloney

It's also notable, and worrying, that the housing market is back in a "flipping frenzy" with non-bank actors climbing aboard to fund the speculation.

Since 1999 year-end through 2015 home prices have risen 76% while household mean real income has grown less than 2%; the millennium-to-date gap between the two growth rates peaked at 84% during 2005-2006 and has risen back to 74% as of 2015 year-end. Gap at year-end 2007 was 75%.

This millennium through 2015 has seen average new and existing home sale prices rise 84% and 55%, respectively, despite the lack of income growth.

Existing and new home sales average prices peaked at $280.2k in June 2015 and $384k in Oct. 2014, respectively; both peaks exceeded levels seen during housing boom.

Over the same period outstanding home mortgage debt has risen 14%, though it's notable that with the end of easy mortgage credit it has fallen 11% from its June 2008 peak.


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