Tuesday, February 5, 2013

Exponential Trend Failure of the Day

Click to enlarge.

Does this mean that the new homes of the future won't all come with wall-to-wall granite flooring? Shocked! Shocked I tell you!

Source Data:
St. Louis Fed: Real Median Sales Price for New Houses Sold


Luke Smith said...

When you look at the median sales price divided by disposable personal income a very humble picture is present: even at its low point, median sales price of new houses are 6 times that of disposable personal income. So, even when the median new house price is cheap, it is still relatively expensive on a per capita basis.

The per capita American would need to save 3 times their disposable income to put down as downpayment just to buy the house with a mortgage that is 3 times their income. And consider that the personal saving rate just shot up to 6.5%! Is that even a good sign?

Stagflationary Mark said...

Luke Smith,

I think the "per capita American" is facing enormous headwinds over the long-term. Sigh.