The Speculative Bubble Blog uses the stats derived by Robert Shiller which we covered here back in September. (Hat tip to True Gotham) Shiller trends the housing market for 116 years adjusted for inflation.
While this chart is pretty scary looking (duh!), its based on the sales price of “standard existing houses, not new construction” and doesn’t include condos or factor in foreclosures.
I was always taught that you need to plot at least two data points on a chart to make a point, so I’d love to see this index matched against personal income, housing costs as a percentage of personal income or some relationship to leverage to get something constructive out of data series.
Still it makes good fodder for a railroad software game – a very creative application of housing stats – take a ride:
Tags: Robert Shiller