Locally, wages and median income have not kept pace with the 100-300% increase in asking/selling prices seen in this area since the year 2000. In many instances, prices look like its 2006 around here; in other instances, are coming down. This is because supply continues to exceed demand. Sales are low even with a peak in seasonal demand in July and August PLUS the upto$8k tax cred. Sales were still double digits % lower than 2008 during the summer, except in the category of attached homes in Albemarle County during July and August.
From the USAT article:
- More Americans found housing unaffordable last year, even though home prices across the U.S. have taken a major fall.
- The number of renters increased, while the number of homeowners declined.
- Reflecting the rapid pace of foreclosures, the number of homeowners dropped by about 142,000.
- From 2007 to 2008 the homeownership rate fell more than half a percentage point, to 66.6% — the lowest level since 2002
- Many of those former homeowners have become renters, a segment feeling the brunt of steep housing costs.
- Overall, the number of renters swelled by nearly 900,000 in 2008 compared with 2007.
- More than 40 million spent 30% or more of their household income on housing costs, 600,000 more than in 2007.