Seattle Bubble • Seattle Home Prices Back in Line with Per Capita Incomes
Are we going to get back to the same relationship between median household incomes and home prices that we had 1990-1997? Personally, I doubt it. If you recall, way back in February 2009, I called for the “bottom” in December 2010 at 36% off the peak. Note that this was before the $8,000 tax credit put the home price correction on hold for about a year. As of January, prices as measured by Seattle’s Case-Shiller home price index are 30% off peak. Another 6% drop from the peak translates to about another $30,000 off local home prices. Doesn’t seem too unreasonable to me by this coming December.
