Existing Home Sales Highest Since 2007 Despite Stagnant Wages And Mortgage Purchase Applications

Existing Home Sales soared to a SAAR of 5.49 million in June, the highest since early 2007 while median home prices reached an all-time high.

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The odd thing about the existing home sales report from the National Association of Realtors (NAR) is that the growth in existing home sales is outpacing mortgage purchase applications.

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And existing home sales are outpacing average wage growth as well.

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Median prices for existing home sales are at an all-time high, despite stagnant wage growth and mortgage purchase applications.

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How do you spell investors? M-O-N-E-Y!

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Apartment Living: June 1-Unit Housing Starts Down 1 Percent, Multifamily (5+) Unit Starts Up 29 Percent

Stagnant wage growth (US Real Average Weekly Earnings YoY rose only 1.8% in June) is a good reason why June housing starts are up 10% … because 5+ unit starts were up 29%. 1 unit starts were actually down in June by almost 1%.

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Here is a chart of 5+ unit starts compared with average wage growth.

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1 unit (single family detached) housing starts fell almost 1% in June and remain depressed relative to the last decade’s activity.

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On the permit side, multi-family permits rose the most since 1986.

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Apartment living is the newest rage thanks to income stagnation.

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It’s hip to be … an apartment dweller!