Concept: July 11, 2022. Housing Affordability at Historic Lows

Housing affordability, as measured by Goldman Sachs, is now at the lowest it has been since 1997. It its lower even than at 2006, just before the housing market collapse which led the way into "the Great Recession"

The reasons for this are the high mortgage rates, driven by the Federal Reserve increasing the interest rates, which in turn increase bond yields. In addition, the home prices are increasing at an annual rate of 20%, without a comparable increase in salaries. Finally, the CPI is increasing also faster than salaries and the most affected areas are food and energy.

For further information, read this article and this one

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.