It shows housing is 100% overvalued. Nationally. Local market will be above or below accordingly.
Viewed in context of history, the graph shows a lot. What it clearly shows is that the current median home price nationally should be ~$110K versus the $200K it is. It also shows that anything above or below $110K is cyclic noise.
Prior to modern credit and central banking policy, the equivalent was $100K, now the reset point is $110K corresponds to the suburbanization shift that occured post WWII.
You local market will show the same, in fact, Rich has already posted it for SD, OC and LA. It’s the median price to income chart. Which is 8.5-9.0X median income.
