Home prices are "close to the bottom"

[w¡n9Nµ7 §£@¥€r 123]

...

While we would prefer to compare household income to home prices, reliable figures for household income are only available on an annual basis and even then there are different methods to compute the numbers. Per capita disposable income is available on a monthly basis from the U.S. Department of Commerce. Figure 5 compares the Median Sales Price of an Existing Home with per capita disposable income back to 1970.

Over the entire period, the median sales price has been on average 6.19 times per capita income, on a three-month moving average basis. The ratio reached its peak of 7.34 in October 2005 and its low was hit at 5.55 in December 1990. The previous peak was 7.17 hit back in August 1980. The period between 1984 and 2001 saw relative stability in the median sales price to per capita income ratio, with average ratio of 5.80 and a peak of 6.12 and low of 5.55.

The most recent reading shows housing prices at 5.74 times higher than per capita income in May, or just 0.19 point above the all-time low. One caveat is that per capita income was boosted by the tax rebates in May, which reduced the ratio.

Based on a comparison between housing prices and per capita income, there has already been a substantial correction in home prices and this particular measure suggests prices are close to the bottom.

...

http://media.mcclatchydc.com/smedia/2008/0...ffiliate.91.pdf

[Ken y Leidys 20]

In March 2007, my house reached a peak of $425,000.00 in value. Now, it is down to just $201,000.00 Quite a drop in roughly 1 year.

[almaty 19]

wow!...damn Brother Ken,,,that is terrible...

[Gaby&Talbert 1]

I recently received a new tax assessment and they increased the value of my home by 30% over last year. I am contesting this because everything here has decreased in value as well as nothing is selling now.

[almaty 19]

they always seem to up the value every year, for tax purposes....