Feb. 22, 2014 - Core Logic's senior economist Mark Fleming gives contrasting views on low-cost housing which he attributed to economists predicting with experience a shock 2014. Although, there is a mark of consistency in their prognosis, Mr. Fleming says, “that rising rates, increasing house prices and stagnant incomes will soon herald the demise of the era of affordable housing.”
At the same time, Mr. Fleming did not argue the basic premise, he opposes with the view that the “news is shocking." He further says, "As I often point out with most housing statistics today, it is less important to focus on the fact that housing affordability is declining, but rather where it stands relative to historically normal levels." Historically on the other side of it, Mr. Fleming also argues that low-cost housing affordability as a matter of fact is moving alongside two differing path, that is one for existing homeowners and another for those first time home buyers.
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