I almost feel like typing ditto, repeat for this Instapopulist news.
the Commerce Department reported Wednesday that sales of new homes fell an estimated 5.3% in October to a seasonally adjusted annual rate of 433,000, the lowest level since 1991.
The real news on these economic indicators is that economists seemingly consistently under estimated the declines.
Now to the meat of these indicators: the price of homes. Prices have declined 7% from one year ago, to a median price of $218,000.
Let's see, the mortgage calculator would give a rough monthly payment of $1500 dollars.
What kind of salary does one need to afford a $1500 dollar house payment?
Well, the median income in the United States is $50,233.
According to this what can you afford calculator, taking a modest $300 dollars a month in other debt, a $10,000 dollar down payment, one can afford a house price of $143,000 to $160,000
Now why is it few are paying attention to the fact most Americans simply cannot afford these homes?
Why are we trying to prop up a bubble that is not sustainable?