All That Is Wrong With The US Housing Market In One Chart
If there was one chart that shows best what is happening with the bifurcated US housing market, it is this NAR breakdown of sales by pricing bucket. It shows beyond a doubt that courtesy of the Fed's policies there is not one but two housing markets in the US: that for the 1%, or those who purchase mostly homes in the top price buckets ($500 and certainly above), and that for everyone else. Guess where the bulk of the activity (i.e. flipping) is, and worse for the so-called recovery, where it isn't.
The logical follow up question: what percentage of total sales fall in any given price bucket? Here is the answer.
So 4.5% of the total US housing market, that costing over $750K is seeing a pick up in activity. The remaining, and cheaper, 95.5%: not so much.
Preemptive spin attempt warning: harsh snow in the winter fell only over houses that cost $500K or less.
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