Tuesday, April 26, 2011

"Cheapest Homes In 40 Years? Not Even Close..." - Barry Ritholtz

Barry Ritholtz shreds The National Association of Realtors, again.  Ritholtz notes that there's only been one month, ever, when the trade association thought it was not a great time to buy.

Ritholtz points out that the most accurate metric to determine housing affordability is median income  to median price ratio. 

As the Virginia Housing Development Authority economist, Barry Merchant, has repeatedly told the CAAR, Charlottesville's median income to median price ratio has been at or near the steepest in the state for years (5-6x) and needs to fall before this market achieves "balance" or recovery (6 months supply of "homes" is a "balanced" market).  Read: years from now.

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