For many homeowners who are not pulling out equity to buy hum v’s or putting in a new pool the housing market is meaningless. They can afford the monthly payments, they plan on staying for a loing time and are making additional payment each month to pay the house off early.
Here is an idea. There are really 2 components to any home. The first component is the land, the second component is the home. Commodity prices are up dramatically ie. copper, oil, lumber, cement, etc. There is a push to reform immigration which would increase the cost of labor used to build homes. The bottom line here is that while land values are coming down the cost of building is going up sharply. What is the par value of a new home. 80, 100, 150??? Or even more meaningful what can be used as the rate of increase. 3,5,7, 12???