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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (21496)	6/10/2004 2:51:38 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 306849

one of my friends from LA emailed this link to me... scroll down and read "heaven from home buyers" (he recently purchased a home in S. Ca...he told me the article sounded like something out the X files <g>) elitetrader.com

To: GraceZ who wrote (21496)	6/10/2004 4:39:16 PM
From: gpowell	Read Replies (1) \| Respond to of 306849

Not that I can see. I went back to 1959 through 2004, in San Mateo Country, and found that median home prices have never been less than double the median family income. The rate at which home prices diverged from income was surprisingly constant between 1970 and 1990. From 1989 to 1999 median income increased by 12%, while median home price increased only 3% - meaning the divergence reversed during this period. Since 1999, median home price have accelerated at a high rate and only recently has caught up to the old divergence trend line. I converted all data to 2004 dollars.