Chart of the Day: Housing Bottom? We're Still Making a Top!
mybackpagesbyjessefelder.blogs… — Barry Ritholz presented this enlightening chart today over at the Big Picture. It's simply a great perspective on the investment value of housing and where we stand in the current cycle.
jessefelder- 7 diggs
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- unlawflcombatnt, on 05/22/2008, -0/+1Interesting graph. It's very similar to graphs of Home Prices-to-Income -- it has the same peaks and valleys.
Nationwide home prices are still far above any level dictated by historic demand factors. And the surplus of homes for sale, and the number of homes not owner-occupied, are both at record highs.
Home prices still have a long way to drop before they hit a historically stable level. - jessefelder, on 05/22/2008, -0/+1prices need to come down further, imho. my only problem with the chart is that it doesn't account for interest rates. historically low mortgage rates should make for a somewhat higher-than-average ratio. still, it looks from the chart we're probably still 2-standard devations away from fair value right now...
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