In my photo vault I have found this picture of San Jose Mercury News from 6/22/2002.
One of the subtitles is: What it means – Buyers over their heads; economy at risk if bubble bursts.
Now look at this:
It was a long way from mid 2002, but when it burst then it burst really good. I always knew that such ratios of house price to household income were not sustainable. I guess that things will be fine again when the national house price to household income ratio gets back to between 3.5 and 4.
Unless, Obama wins the elections. But then we will not have to worry about housing and mortgages as everyone will eventually get some government assigned housing. Isn’t that lovely.