FURTHER PROOF THIS ISN'T A HOUSING BUBBLE...SHORT INVENTORY HERE TO STAY

Many people, understandably, are worried about a housing bubble.  After seeing the median price climb month over month for 48 straight months (CoreLogic), it's understandable, that to the untrained eye, it could seem that way.  But this column, and the Keeping Current Matters National Blog, have both pointed out that the appreciation is simple economics of supply and demand, coupled with cheap money, i.e., low interest rates.  Consider the following quote from Lawrence Yun, the Chief Economist at the National Association of Realtors, as read in Forbes, "Even though home prices are climbing far above people's income, exceptionally low mortgage rates have permitted people to buy a home without overstretching their budget.  For someone making a 20% down payment, the monthly mortgage payment at today's mortgage rates would take up 15% of a person's gross income.  During the bubble years, it was reaching 25% of income.  The long-term historical average is around 20%.  Therefore, a middle-income household does not need to overstretch their budget much if at all to buy a typical home."   (Bear in mind also, this quote doesn't address the fact of all the "stated income" loans, during the housing crisis, where the monthly payment approached 40% after the "teaser" year).    In fact if you look up the chart, recently published, from the Joint Center for Housing Studies, of Harvard University, you would see that the median payment for the US through 2015 was $858 as compared to the top of the market in 2006, when it hit $1,305.  For those So Cal citizens that would love a payment of that size, (think California prices), remember our median income is much higher.  The bottom line is interest rates have continued to fuel demand for housing.  That demand has caused increases in prices.  However, after torrid years of appreciation in 2013 and 2014, last year slowed to about 6% overall and 2016 is predicted to hover between 5% and 6%.  Housing should stay solid for the remainder of this year.  What happens post national election, is always a bit of an unknown.