Home prices WILL contract so that the median house is 2.5-3x the median income
says Karl Denninger. Now do your sums.
Some interesting comments and suggestions (including my usual twopenn'orth) on this post at the Capitalists@work blog - people seriously discussing inflation hedging and survivalism, here in the UK. We're getting beyond ivory-tower discussion.
1 comment:
Vancouver, where I live, is the 13th least affordable city in the world. It requires 7.7 times the median income to buy the median house, although that was last year, with house prices up 20% from a year ago, with no slow down in sight.
When we bought our first house in 1964 the formula we used was 2.5 times our annual salary was the house range we could afford.
There is hardly a single house on the west side of this city under a million dollars for the land is valued at that and more. In fact a knockdown house near me on a 53 x 120 foot lot sold this week for $1.8 million dollars and it will be knocked down.
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