Unsustainable realty market continues off track
According to the Des Moines Association of Realtors(tm), over the past 30 years, the median price of existing homes has increased an average of 6% every year. And since 2000, the average home sale price has increased more than 25%. Sound sustainable? If the median inflation rate is 3%, then for the past 30 years, homes have outpaced inflation at twice the rate. And in the last decade, the sale prices have skyrocketed. And the only thing that can mean is that people are able afford less home than in years past -- unless, of course, you remove borrowing restrictions and open up mortgages to people who can't pay back the money.