Despite the fact that home prices are more affordable than ever --
the percentage of people looking to buy a new one remains near multi-decade lows --
Doesn't quite sound like "recovery" to me (but then again, what do I know?)
(Charts: "US Housing Outlook: Housing Recovery Stalling?" Torsten Stock, Chief International Economist, Deutsche Bank)
A Bottom in Housing? not in my opinion.
Agreed home prices are way down, but more affordable?
In my view that's highly debatable.
A chart home prices versus average income could shed some light.
And just wait till the Canadian market hits the skids.
Posted by: roger | May 11, 2012 at 07:42 PM
Michael, those two graphs taken together are very interesting. In the early 80's house prices crashed because ordinary people were having a hard time; now, they are having a hard time again and house prices are still holding up. Would this indicate that the growing inequality of wealth has led to a "disconnect" in the housing market, similar to that in the stock market?
Posted by: Rolf Norfolk | May 12, 2012 at 03:07 AM
... and would that house price statistic be sold prices only? In which case this might be relevant:
http://www.ft.com/cms/s/2/9a571df2-89b4-11e1-85af-00144feab49a.html#axzz1ufeQGZZW
Posted by: Rolf Norfolk | May 12, 2012 at 11:47 AM
I wouldn't *own* another home if they were giving them away for free.
Here in WA state, local government calculates property taxes based on projected spending needs, not constructing a budget within expected tax revenues.
So even if you own a home worth $0.00 they will incessantly escalate your tax rate to meet their spending.
It's crazy. I will rent forever.
Posted by: gardener1 | May 13, 2012 at 04:04 PM