| Being that most of our clients are real estate | | | | still up a remarkable 32 percent since the beginning of |
| investors, we felt that it was important to level the | | | | the decade. |
| playing field by offering up some insights into various | | | | Household incomes, on the other hand, haven't done |
| aspects of the industry. | | | | a very good job of keeping up. The same Census |
| The great American Dream has always revolved | | | | report showed that income has actually dropped, not |
| around owning a home. Sure, having the 2.3 kids, the | | | | risen, over the past 7 years, down 2.8 percent. |
| cushy corporate job and the stylish car to drive to | | | | Maybe the worst news in the report was the |
| work everyday are part of the myth, too, but | | | | percent of people who allot more than 30% of their |
| nothing quite summed up Americana quite like the | | | | income for housing. The numbers are up almost 8%. |
| white picket fence. But if recent economic numbers | | | | National guidelines suggest that more than 30% of |
| are any clue, this dream is becoming a nightmare for | | | | household income for housing is excessive and not |
| many in the US. | | | | financially healthy. |
| According to date released by the United States | | | | What does this mean in the long run? |
| Census Bureau, an increasing number of homeowners | | | | Most experts agree that until income can catch up to |
| are spending a larger and larger amount of their | | | | housing, the real estate market will remain lifeless. |
| incomes on housing than in previous years. People in | | | | And since real estate is one of the biggest drivers to |
| 49 out of 50 states reported an increase. The only | | | | the overall economy, a weak real estate market |
| state that didn't, Alaska, spent the same amount. | | | | means a weak economy. |
| The report showed that people are spending around | | | | Things appear to be the worst in California. Not only |
| 21 percent on their housing needs, up from 19 | | | | do they have the most expensive real estate in the |
| percent in 1999. | | | | nation, 48 percent of California homeowners spend |
| This is a huge problem for first-time buyers who may | | | | more than 30% of their income on housing related |
| now be priced out of housing markets all across the | | | | costs. |
| country. Economists point to rises in home prices in | | | | Until income can begin to grow as quickly as the real |
| the last 7 years, as well as higher interest rates, | | | | estate market, this trend shows no signs of slowing |
| coupled with stagnant wages over the same period. | | | | down. Which could mean that the upcoming real |
| While everyone seems to be in agreement that the | | | | estate slump could last much longer than anyone |
| housing "bubble" is either bursting, or getting ready to | | | | predicted. |
| burst depending on where you live, housing prices are | | | | |