The national median price for an existing home in December 2013 was $196,300.
Median household income at the end of 2013 had reached $52,297.
That's a ratio of 3.75:1, which is even higher than the 3:1 ratio which prevailed a year ago, and 44% higher than the recommended ratio of 2.6:1.
Either housing is still much too high or wages are much too low to support ownership of the median priced home in the United States. It is more likely that both things are true.
And forget about buying a new house on such an income.
The median new house price reached a new record in December at $270,200, vaulting the ratio to 5.17:1.
Housing prices have continued to rise because of deliberate government policy to reinflate the housing bubble.
Sellers should sell and buyers should beware.
