It is easy to see how this thinking has taken form if we look at
a graph of home prices from 2000 to today.
It is easy to see how this thinking has taken form if we look at
a graph of home prices from 2000 to today.
Not exact matches
The article includes
graphs of average
home price to median income for 20 metro areas.
As an example, below is a
graph from the latest Black Knight Mortgage Monitor showing the percentage
of median income needed to buy a medium -
priced home in the country today in comparison to prior to the housing bubble and bust.
The
graph above represents the monthly values
of the S&P / Case - Shiller Index, which is a national measure
of home prices, from its inception in January 1987 to June 2011.
Last week, we posted a
graph showing that
home prices appreciated each
of the last four times mortgage interest rates dramatically increased.
The article includes
graphs of average
home price to median income for 20 metro areas.
Not only do we go over the numbers and comparables when we are in the process
of pricing a
home, but we also put together a
graph that lists all the features
of the particular property, much like a Broker
Price Opinion.
Just eyeballing the
graphs, more often, however, it seems that
home prices and «Percent
of Homes Increasing in Value» tend to move at the same time.
Looking at the
graph, it seems that when the percentage
of homes with increasing values is high (above ~ 66 %) or is increasing fast (up several percentage points in a month),
home prices tend to increase — or continue to increase — in the future.
I would love to see time - series
of their index on the same
graphs as time - series
of home prices so I could see for myself if the Weiss Residential Index is a good leading indicator
of future
home sale
prices.
Allan Weiss was part
of the team that in the early 1990s developed the famous Case - Shiller
Home Price Index, the index that is featured in
graphs here on this website.
Looking at the
graph above, the number
of homes sold peaked in 2005 and then started to tank, but nationally
prices didn't start to fall until 2 years later.
Other mobile - friendly viewing options include map
of comparable
homes, recommended
price range and comparable
pricing graph.
New
homes are
priced above average resales, as you say (and as the 2nd
graph shows), and so you're right to point out that this logically equates to higher incomes for buyers
of new
homes.
As an example, below is a
graph from the latest Black Knight Mortgage Monitor showing the percentage
of median income needed to buy a medium -
priced home in the country today in comparison to prior to the housing bubble and bust.
A lot
of the national news stories about
home price increases have been about Dallas and Denver for some reason but as you can see from the
graph both cities have appreciated less since 2000 than the other cities on the
graph.
Home prices in Denver in the 1990s increased more than any
of the other 20 cities in the
graph.
The Wall Street Journal published a
graph to show that in the majority
of price brackets, more
homes sold that had photos from a professional camera compared to photos taken with a point - and - shoot.