Posted on 06/16/2011 6:36:44 PM PDT by Atlas Sneezed
It is kind of the fine folks who compile the Case Shiller index to finally "definitively" tell us that home prices have now officially double-dipped (or is that quadruple dipped when one adjusted for the pro forma impact of QE1 and 2?). Well, below is a chart that cuts right through the noise and semantics, and shows that when expressed in a currency that has not been battered and diluted endlessly, the true normalized value of housing is really down 80% not just since the housing peak but since the turn of the millennium.
Median home price priced in gold.
Wouldn't it be a great time to just buy a house somewhere, anywhere (decent neighborhood, not too far off, within distance of family) even though one doesn't live in it? Just hold on to it and hope it appreciates in value? Maybe rent it out?
What are the downsides of this idea with such low low prices all around?
Logarithmic scaling.
Makes it look better than it really is.
It sucks.
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Wouldn’t it be a great time to just buy a house somewhere, anywhere (decent neighborhood, not too far off, within distance of family) even though one doesn’t live in it?
What are the downsides of this idea with such low low prices all around?
Personally, I don’t think we’ll see the inflation/gold-adjusted bottom until maybe 2015.
One author has suggested that buying a median home for 500 ounces of SILVER will be plausible.
You need to wonder harder...Ya got tens of millions who lost their jobs, or had their hours and benefits slashed reduced, etc, etc. Then throw in the price of everything else tripling.
It takes a good job, a steady history of income, usually two incomes and great credit, just to qualify..These things are becoming very rare in American society
Unless you have cash (or all gold) to purchase the home, no one is giving out mortgages these days.
That’s ridiculous. I’m a Realtor, am selling houses all the time and of course my clients are getting mortgages.
That’s ridiculous. I’m a Realtor, am selling houses all the time and of course my clients are getting mortgages.
That chart is all about the price of gold.
do the same chart using any commodity, you’ll see the same pattern
that is why it’s called the ‘gold standard’
Gold and Real Estate cannot track separately for long. They will eventually draw much closer together.
I dunno. Gold was at $800 in 1980, $250 in 2000, and $1500 or so today. The chart reflects that.
Maybe we’re agreeing.
Gold and Real Estate cannot track separately for long. They will eventually draw much closer together.
A failing nation will see gold rise compared to its properties.
When real estate bottoms, the smart metal will buy real estate. 20 ounces of gold for a median house, perhaps.
Wouldn’t it be a great time to just buy a house somewhere, anywhere...and maybe rent it out?
Escalating property taxes & insurance, deadbeat renters, declining (even further) home values.
If mortgages were denominated in gold, people wouldn’t just be underwater. They’d be in the Marianas Trench.
It sounds great to buy a house and hold onto it but the question is can you pay for it in cash and still have $10,000 for property taxes and maintenance left over. All that aside from your safety account because however slow the economy is to get restarted will depend on how long it will be before you earn a dime with that investment.
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