The Shiller Housing Chart Worth 1000 Words. Take a look at the chart. In my humble opinion, not only are the government attempts to stop prices of homes from falling going to fail, but they will burden our children with yet more unpaid debt, and the intervention will probably make the inevitable market correction far worse. Look at the peak before the last depression. Then look at the peak we're currently falling from, and how much further home prices need to fall just to reach the normal trend, not to mention how much further they could fall if this leads to a greater depression than the great depression itself. High peaks often lead to deep valleys.
Glenn Beck has more:
Friday, February 27, 2009
Housing Chart Worth 1000 Words
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2 comments:
I think the prices are going to continue to fall, but the chart isn't exactly perfect.
We all know that prices are determined by supply and demand. Some things will naturally increase at a rate faster than inflation, and some slower. Housing has probably been outpacing inflation pretty much forever. Land is limited, especially the more desirable land, and to an extent so are the materials used to build homes.
So, housing will probably rise in relationship to inflation, which is the baseline for the graph.
It needs to be charted as a multiple of average income or something like that in order to be more realistic.
Very good points.
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