Dissapointing results can also mean that growth has slowed. Maybe they’re running out of places to put Starbucks. The Onion saw this coming 10 years ago.
[img_assist|nid=1180|title=Irrational Exuburence|desc=|link=node|align=left|width=400|height=359]
You can find similar historical price/income graphs out there. I got the above chart from the Wikipedia entry on the housing bubble. The article shows a good comparison of the recent US run-up in prices with the 1990 peak in Japanese RE, and their 16 year decline.
I’m almost a neutral observer 🙂 I bought my UC home in 1993 , so I don’t really care what happens to the market. I guess I get some occasional satisfaction reflecting my low mortgage, but that’s about it. I think it’s interesting to watch the psychology of both the bulls and the bears.
That’s better. Based on $500k home, a 14.5 ratio puts per-capita income at $35k/year. I can believe that. Anyways, I believe the historical curve. Interesting. Looks like a bubble to me.
