New construction vs. Resale prices

[Eug]

Also it's unlikely material and construction costs will drop if any at all.

From what I've been told, they've already dropped a bit, with much of the drop related to the big drop in energy prices.

Mind you, energy prices are now going back up again.

 

[movieguy]

hi movieguy ... what's this affordability rating you're referring to?

Average price of a home divided by the average annual household income before taxes.

I admit, it's not the best number, but factoring inflation and consumer debt, the picture is even more grim.

US and UK were at 6 when they crashed.

 

[cdr108]

Average price of a home divided by the average annual household income before taxes.

I admit, it's not the best number, but factoring inflation and consumer debt, the picture is even more grim.

US and UK were at 6 when they crashed.

thanks ... that's what I thought you meant.

it's scary and amazing that TO have continued to maintain its R.E. values in the midst of global RE meltdown.

not saying a crash should or would happen here, but i don't think a 20% retracement would be unreasonable considering the appreciation over the past decade.