Tuesday, November 04, 2008

Scary Housing Price Chart

Yikes, here's a scary chart, courtesy of The Big Picture:


You can always say that history does not predict future results, etc, but I find it very interesting when two things relate to each other at an almost constant ratio for decades and then it just suddenly goes haywire! In this case, we're looking at household disposable income vs. home prices. What will it take to get that red line back to normal? Either housing prices have to fall a lot more, or income has to rise. Hmm, which do you think is more likely to happen soon?

2 comments:

Optioned Unarmed said...

House prices will continue to fall, and then remain flat for several years.

Anonymous said...

House prices will fall ... they have to. Will they overcorrect? Some believe so, since that's what often happens ... when a pendulum swings ...

There's no way incomes are rising ...