MBA Economist: Home Prices Growing Twice as Fast as Income

Almost everyone involved in real estate knows about the inventory shortage. But it's not the only culprit contributing to the imbalace in the housing market. CNBC reports:

Compounding the problem is that Americans' wage growth is being left far behind, according to the MBA's Mike Fratantoni. "We're still seeing home prices increase at twice the rate of income growth," he told CNBC's "Squawk Box."

The stubborn lack of gain in average hourly earnings, seen in last week's release of the latest government employment report, has been well documented. Wages in February grew at a less-than-expected 0.1 percent, representing a 2.6 percent advance on an annualized basis.

Adding insult to injury for homebuyers with stagnated earning power, national home prices rose 6.2 percent annually, according to the latest S&P CoreLogic Case-Shiller's most broad survey. Prices nationally are now 6 percent higher than their 2006 peak before the housing crisis.

Lack of inventory main headwind in housing market, says pro from CNBC.