tag:blogger.com,1999:blog-2335748440449035592.post6847721046441094339..comments2008-04-15T09:18:26.406-04:00TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2335748440449035592.post-2198923812528761832008-04-15T09:18:00.000-04:002008-04-15T09:18:00.000-04:00superman,<BR/>I dont think there is much change since I wrote it. Each year Americans income goes "up" by 3-4% but if you adjust for inflation it has been flat in real terms (their buying power) and I'd argue in the past 2-3 years (if not longer) it has been going down. Meaning I get a 4% raise but cost of living in America is rising 8-12% a year. So I am actually falling backwards. So if anything the ratio of wages to house prices is consistent if not falling further behind. <BR/><BR/>On the other side of the equation at least home prices have started to fall. It's going to take a while; the new home market is actually dropping faster in price than existing homes because builders have no sentimental attachment and will discount to move inventory. Current home owners have mentally overinflated the value of their homes and thus have not moved to where the market is. With the coming flood of foreclosures and walkaways in latter 2008 and 2009 that will just drive inventory up.<BR/><BR/>Tech stocks have not come back sine the early 00s - so people who think there is going to be some huge rebound in home prices in 2010 or something are just dreaming. When it does "come back" its going to be sideways action for a long time except in pockets of demographic growth and migration in the country. And even then we have to get used to more normalized growth, not 15-25% a year. In the long run, home prices should go up around the rate of wage growth ...TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-50617541794098499212008-04-14T18:35:00.000-04:002008-04-14T18:35:00.000-04:00Just re-read your blog --Analysis: What Should Median Housing Price Be Today?--...incredible post! Any chance you could update those figures to give us an idea of how far we've come since then, and how much further we have to go?xxsupermanxxhttp://www.blogger.com/profile/10011695940232086743noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-33540754542253336492008-04-14T07:10:00.000-04:002008-04-14T07:10:00.000-04:00Amazing. Housing prices actually have only declined 10-15%. After a 100% runup. Cant even call it a housing bear market, more like a minor correction. <BR/><BR/>Anyone who cant handle a 10% price drop in his underlying assets deserves to go out of business. Just what kind of moron leverages himself 30:1? Wipe them all out and start from a clean sheet. <BR/><BR/>These people are not qualified to be working in the financial sector and need to go find another job, like loading trucks or fruit picking.shaxmatisthttp://www.blogger.com/profile/07220757563758396222noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-11741253259900637402008-04-14T00:05:00.000-04:002008-04-14T00:05:00.000-04:00I never antiipated that there would be sooo many bozos in politics who are ruining lives of common honest folks by rewarding the dishonest/stupid folks... <BR/><BR/>Shame on these politicians for doing all of these idiotic things to this wonderful country... all of this only to win votes and fame... huh!! <BR/><BR/>Cheeers....Pankajhttp://www.blogger.com/profile/13478816568647309907noreply@blogger.com