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New Data Say House Prices May Be Nearing a Bottom - TIME
Yes, not P/E ratios although apparently in real estate it's the same thing.
Yes, not P/E ratios although apparently in real estate it's the same thing.
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I like the P/R ratio. I would use it if I was buying a house to live in...and live in for a very very long time. But, the ratio is irrelevant if housing prices are declining. Prices have not reverted to their mean, the bubble still has prices accelerated ahead of incomes, the $8k homebuyers' credit fiasco has ended (theoritically, housing should drop $8k immediately), and interest have only one place to go....up. The chances of home prices dropping again are just too high to justify buying anything that you would not define it as a place to live in for a long time and really don't care what happens to the price.
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