That the housing market has gone crazy in many parts of the country – a phenomenon of the Pandemic stimulus extend-and-pretend forbearance free-money foreclosure-ban economy while households reported a loss of 9.0 million jobs in November, from February – and that this crazy housing market couldn’t last has become apparent to everyone months ago. In October, Redfin CEO Glenn Kelman said just that. It wasn’t “sustainable,” and “there’s no way it can last forever,” he said. So today we got another dose of crazy housing numbers, with the first dip since all this started in the spring.
Over the past five years, the median home price has risen 42%, outrunning by a huge margin the wage gains of just about any category of wages, from the top 5% on down.
Since the median price is skewed by a shift in the mix, and with red-hot demand for higher-priced homes in this special economy of ours, the price increase could be partially a result of a larger portion of higher-priced homes in the sales mix.Housing Market Goes Crazy, Everyone Sees It Can’t Last, and then the First Dip Appears | Wolf Street