Household incomes fall as home prices rise at slower pace
Household incomes fell in 2009 for the second year in a row, while home prices in 20 U.S. cities rose at a slower pace in July from a year ago.
The Washington Post reported fewer families earned over $100,000 a year and the ranks of the poor rose last year, according to Census Bureau statistics.
Median household income was $50,221, down from the $51,726 the Census Bureau reported for 2008, and down from $52,384, or 4 percent, from 2007. Almost one in five households reported incomes of $100,000 or more in 2009, which was down almost a full percentage point from 2008.
Almost one in four families earned less than $25,000, which was an increase of one percentage point.
In related news, home prices in 20 cities rose at a slower pace in July than from July 2009, reflecting a drop in sales following the end of a government tax credit, Bloomberg reported.
The S&P/Case-Shiller index of property values increased 3.2 percent from July 2009, the smallest year-over-year gain since March.
The numbers reflect a three-month average, which means the July data are being influenced by transactions in May and June that may have benefited from the government homebuyer incentive.
High unemployment numbers will probably weigh on the housing market for the rest of the year, as some households will continue to have trouble making mortgage payments, indicating foreclosures will remain a hurdle for property values.