here's another take on where home prices may be headed. in a nutshell, home prices were very close to a constant multiple of median family income (trending around 2.8 times median family income) during 1977 to about 2001. then prices took off, heading to nearly 4 times. prices still have a ways to drop to get back to a 2.8 factor. and, of course, they may drop through that factor before they bounce back. bottom line is another 17% or more drop in prices before they stabilize. or four years of no price increases while income catches-up.
but, and this is big, national median house prices are interesting but residential real estate is hyper-local.
interesting read, here's the link:
but, and this is big, national median house prices are interesting but residential real estate is hyper-local.
interesting read, here's the link:
