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Did you mean to post some actual content to back that up? A link to an article or something?
In it's current state I'm giving this thread a thumbs-down.
1975? Get your vehicle ready to get you there:
I've got a call in to Michael J. Fox, awaiting call back.
I, like, totally screwed up. The appropriate photo would have been:
But then, if the OP comes up with a fourth leg my response is irrelevent.
Houses come down to 1975 levels I’ll be buying a half dozen, maybe a few on the beach LOL.
How Much things cost in 1975
Yearly Inflation Rate USA9.2%
Year End Close Dow Jones Industrial Average 858
Interest Rates Year End Federal Reserve 7.25%
Average Cost of new house $39,300.00
Average Income per year $14,100.00
Average Monthly Rent $200.00
Cost of a gallon of Gas 44 cents
Average cost new car$4,250.00
Foster Grant Sun Glasses $5.00
Average Cost of new house $39,300.00
Average Income per year $14,100.00
So average house cost 2.7 times income.
That 14,100 would be approximately $56,000 in 2011 dollars.
Let's say for the sake of argument 2.7x though which is $151,200 which is actually doable in a lot of places in the USA right now.
However both median and average income are actually a bit lower than that closer to $50,000 dollars.
I expect if interest rates went to 7.25% the average house would rapidly drop to 2.0x
Let’s say for the sake of argument 2.7x though which is $151,200 which is actually doable in a lot of places in the USA right now.
Indeed, especially for an average 1960-s vintage house (which was perhaps the average house in 1975). The payment would, of course, be much lower because the rates are FAR from 7.25%. So how this fits into the argument that the housing is still substantially overpriced?
1975 will be the final destination of leg III. I hope to see most of you, Patrick.net readers buying your long-awaited properties then.
#housing