-
WSJ posted this comment about the relationship between home prices (S&P/Case-Shiller national index) and income growth (Commerce Dept.). It doesn't look so bad when you consider average income growth. But I find it hard to believe that median income growth since 1999 is anything close to the happy story shown in the chart. -
Re: Home Prices vs. Income Growth
If the numbers are not inflation adjusted, it is easily believable.
That's why charts are so useful for manipulators of perception.Last edited by c1ue; March 13, 2008, 12:06 PM. -
Re: Home Prices vs. Income Growth
How is that median income affected by rising unemployment?Comment
-
Re: Home Prices vs. Income Growth
We noted back in 2005 the correlation between income and home prices to make the point that in the future when incomes finally fall, so will home prices.Originally posted by quigleydoor View Post
WSJ posted this comment about the relationship between home prices (S&P/Case-Shiller national index) and income growth (Commerce Dept.). It doesn't look so bad when you consider average income growth. But I find it hard to believe that median income growth since 1999 is anything close to the happy story shown in the chart.
Fast forward three years and then project out two and here's what we see. Green demarcates falling unemployment and rising home prices, red demarcates rising unemployment and falling home prices.
Ed.Comment
-
Re: Home Prices vs. Income Growth
So at least three years of 5-10% real declines for at least three years from here?
Any thoughts on when the recovery begins?Comment
-
Re: Home Prices vs. Income Growth
WDCRob: Suggest you have a look at the excellent commentary already on the site for the best answer to your question. This series by EJ is well worth the time to re-read, and a good place to start, IMO...Originally posted by WDCRob View Post
"Recession 2007"
http://www.itulip.com/forums/showthr...ght=Home+PriceComment
For a concise, readable summary of iTulip concepts developed over the past 16 years and a vision of a challenging next decade and how to navigate it, read Eric Janszen's book "Post Catastrophe Economy".
Join the discussion of today's events with a wide range of professionals with an interest in economics and finance. Register to join our 50,000 plus member registered community from 78 countries today.
Subscribe to iTulip Select for access to the longest running, deep, accurate, and unvarnished macro economic trends analysis and forecasting available, since 1998.
- If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.
Working...
Tweet
Comment