On Topic – We hit bottom

[Anonymous]

One thing I will say is that if you believe the CPI, inflations was 25% from 2001 to 2008, and we all know it’s probably too low.

I don’t know how many times this needs to be repeated, home prices correspond to wage inflation not price inflation. In real terms 2008 wages are flat to 2000 wages if inflation equals the CPI. Because of this, I would say CPI is a relatively good metric to show how house prices should have inflated over the last 7-8 years because wages tracked it. If inflation was significantly higher than that, but wage inflation tracked CPI then there is less available money to purchase houses and we shouldn’t see home price increases just on inflation alone.

[cr]

The bubble is over, but we’re nowhere near bottom.

It’s still deflating, and the Government’s antic’s are delaying the inevitable, while simulatneously keeping homes affordable and draining anyone who actually lives within their means.

If you’re going to make a claim like that, at least back it up with something more than “It has been over three days since anyone has posted in “areas” or “buying and selling”.

And don’t come back with July sales rose over June either.

[cr]

The bubble is over, but we’re nowhere near bottom.

It’s still deflating, and the Government’s antic’s are delaying the inevitable, while simulatneously keeping homes affordable and draining anyone who actually lives within their means.

If you’re going to make a claim like that, at least back it up with something more than “It has been over three days since anyone has posted in “areas” or “buying and selling”.

And don’t come back with July sales rose over June either.

[cr]

The bubble is over, but we’re nowhere near bottom.

It’s still deflating, and the Government’s antic’s are delaying the inevitable, while simulatneously keeping homes affordable and draining anyone who actually lives within their means.

If you’re going to make a claim like that, at least back it up with something more than “It has been over three days since anyone has posted in “areas” or “buying and selling”.

And don’t come back with July sales rose over June either.

[cr]

The bubble is over, but we’re nowhere near bottom.

It’s still deflating, and the Government’s antic’s are delaying the inevitable, while simulatneously keeping homes affordable and draining anyone who actually lives within their means.

If you’re going to make a claim like that, at least back it up with something more than “It has been over three days since anyone has posted in “areas” or “buying and selling”.

And don’t come back with July sales rose over June either.

[cr]

The bubble is over, but we’re nowhere near bottom.

It’s still deflating, and the Government’s antic’s are delaying the inevitable, while simulatneously keeping homes affordable and draining anyone who actually lives within their means.

If you’re going to make a claim like that, at least back it up with something more than “It has been over three days since anyone has posted in “areas” or “buying and selling”.

And don’t come back with July sales rose over June either.

[BGinRB]

[quote=FormerSanDiegan]
You are mistaken. Clearly the monthly housing costs relative to rent and incomes are below 30-year averages as shown in Rich’s recent charts.

Monthly House Payments, Rents, and Incomes

[/quote]

I stand corrected. I had the CR’s national price-to-rent chart in memory
http://calculatedrisk.blogspot.com/2008/09/housing-its-about-prices.html

[BGinRB]

[quote=FormerSanDiegan]
You are mistaken. Clearly the monthly housing costs relative to rent and incomes are below 30-year averages as shown in Rich’s recent charts.

Monthly House Payments, Rents, and Incomes

[/quote]

I stand corrected. I had the CR’s national price-to-rent chart in memory
http://calculatedrisk.blogspot.com/2008/09/housing-its-about-prices.html

[BGinRB]

[quote=FormerSanDiegan]
You are mistaken. Clearly the monthly housing costs relative to rent and incomes are below 30-year averages as shown in Rich’s recent charts.

Monthly House Payments, Rents, and Incomes

[/quote]

I stand corrected. I had the CR’s national price-to-rent chart in memory
http://calculatedrisk.blogspot.com/2008/09/housing-its-about-prices.html

[BGinRB]

[quote=FormerSanDiegan]
You are mistaken. Clearly the monthly housing costs relative to rent and incomes are below 30-year averages as shown in Rich’s recent charts.

Monthly House Payments, Rents, and Incomes

[/quote]

I stand corrected. I had the CR’s national price-to-rent chart in memory
http://calculatedrisk.blogspot.com/2008/09/housing-its-about-prices.html

[BGinRB]

[quote=FormerSanDiegan]
You are mistaken. Clearly the monthly housing costs relative to rent and incomes are below 30-year averages as shown in Rich’s recent charts.

Monthly House Payments, Rents, and Incomes

[/quote]

I stand corrected. I had the CR’s national price-to-rent chart in memory
http://calculatedrisk.blogspot.com/2008/09/housing-its-about-prices.html

[Author]

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