Why do we need employment and income data? If unemployment is high and income is low, then wouldn’t sales also be low? So sales would be a proxy for employment and income, just as they are a proxy for inventory (as you explained to me before, thank you again).
The first chart shows a false recovery, something that asianautica was referring to before. What exactly happened to make sales increase for a few years, just to turn back down? Do we need to consider tax policies, inflation?
I mentioned in a post yesterday or Friday, that my friend bought a killer house in Poway in late 1995 for half the price/sq ft of her neighbor w/ the idential lot size and square footage just 18 months prior. So the market was still weak in late 1995.
Perhaps some old newspaper articles, or the memory of an appraise or realtor could be called upon, to explain the 3 year surge in sales.
I’m also wondering if anybody who bought in the early 90’s would have lost money if they sold in the mid-90’s.
