There is a lot of anguish over the cost of homes these days. Factors which drove prices up include high demand from the huge Boomer generation, larger and more-accessory-equipped housing, and Fed-, State-, and local zoning regulations and building-code changes. Naturally, you will not find the MSM nor the usual "Gummint Knows All" junkies talking about the regulations and building codes--nor the impact that 20 MILLION illegal immigrants have on the demand side.
On the buyer-side, it's rarely reported that payments on college loans compress free cashflow for mortgage payments--another factor never discussed by the Usual Propagandists. Like cars, homes are often purchased based on the size/affordability of payments.
And yes, we know that home prices have been rising since the 1970's; that's because all of those factors have been in play to a greater or lesser degree for the past 50 years.
That said, maybe the prices have hit "peak."
Redfin reports the number of home listings that were pulled off the market rose to a historically high level in September. Many homeowners would rather stay put than accept a low offer, and this increase in delistings is propping up home prices...Those 'de-listings' may prop up prices for the time being, but are also a sign that demand is decreasing relative to supply. And we suspect that's going to continue as the huge number of home-owning Boomers finally decide to move to 'senior housing' apartments and/or condos. Which means that supply is going to grow--significantly--over the next decade, while demand drops as illegals leave AND as much smaller cohorts of US citizens look for housing.
One of life's more important economics lessons is this: demographics drive nearly everything.
The demographic of Boomers is the one to watch in the housing drama.
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