Most metropolitan areas, especially in the Midwest and South, have not experienced price declines in the era of modern recordkeeping
Should we be concerned that home prices are rising faster than family income?
Overall housing affordability remains favorable in historic terms.
There is virtually no risk of a national housing price bubble
It is possible for local bubbles to surface under the right circumstances, but that also is unlikely in the current environment
The strong underlying demand for homes results from the simple fact that the population is growing faster than the supply of homes
Baby boomers remain in their peak earning years. Echo boomers – the children of the baby boom generation – are just entering the period of life in which people typically buy their first home.
If conditions become unfavorable, home buying may be postponed, but a general price decline remains highly unlikely.