Finally, I Can Buy a McMansion

Sunday, January 22, 2012
Posted in category housing bubble

Finally, a bottom for home prices. This paragraph made my brain hurt:

A key signal that the bottom is near is a change in the ratio of average homes prices to personal income — houses are affordable again. After soaring to 4 to 1 during the housing boom, the ratio is now well below the long-term average of 3 to 1.

I have absolutely no clue how that is a “key signal” (it sounds more like something made up from a random word generator), but, here’s a better snippet:

By 2014, the housing market should start to look more like its old self, with housing starts near the long-term average of 1.5 million a year, sales of about 6 million and price gains of more than 4% a year.

Its old self? You mean this?

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2 Responses to Finally, I Can Buy a McMansion

  1. Ken Ashley says:

    January 22nd, 2012 at 6:47 pm

    “As the economy picks up steam, they will emerge, helping to soak up the glut of foreclosed homes and putting construction on a faster track.”

    Cute words, “steam”. Phantasy. All bets are off. There exists no precedent on which to base any predictions on “homes”.

  2. Jeff Hebert says:

    January 23rd, 2012 at 10:58 am

    This forecast looks a lot like the 2010 forecast for 2011, at least as I remember it.

    Do people still take these “forecasters” seriously?

    This Canadian won’t be buying a Las Vegas home anytime soon!

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