patrick.net

Just for clarification--1975 nominal prices, or inflation adjusted?

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.

This guy sounds like a buyer to me.

1975? Get your vehicle ready to get you there:

I've got a call in to Michael J. Fox, awaiting call back.

As they say in Australia: "Well done mate!"

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

rpanic01 says

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

Vicente says

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?