For the first time since 2011, incomes rose faster than home prices in the U.S., according to a new report from Zillow.
The median home price climbed to $188,100 in August, a 5% increase from the same time a year ago. And last week, the Census Bureau reported that median household income increased to $56,516 in 2015, up 5.2% from 2014.
“People will have a chance to see more money coming in on a monthly basis in their paychecks, allowing them to save more for a down payment or afford more in a mortgage payment,” said Svenja Gudell, Zillow’s chief economist.
Related: How much house can you afford?
While the rise in income — which was the first increase since 2007 — is good news for wanna-be home buyers, incomes still have a long way to go to catch up with home values.
Home prices have shot up since 2012, as strong demand and limited supply created an affordability issue in markets throughout the country. read more…