Hey Tenters,<\/p>\n
Real sorry about my delay it replying to comments.<\/p>\n
I have been knee deep in it at work.<\/p>\n
The charts measure number of ounces of gold (In USD) to buy and average home in the US.<\/p>\n
Right now, we are seeing an average home in the US go for 200 ounces of gold.<\/p>\n
With Mortgage rates on the climb, Layoffs\/bankruptcies on the rise, inflation and taxation increasing; people are going broke, and I believe that is\/will choke the life out of real estate.<\/p>\n
With the gold price in a bottoming process, and IMHO will be rising in the next few years; My thoughts on this chart tells me that we have had a small upward bump in 2012\/2013 and that the ratio is going to reverse to the downside very soon. Previous lows have been 100 ounces for a house … I am expecting to see this slashed to the downside, maybe 50 maybe less???<\/p>\n
In Weimar, at real estate’s bottom, you could buy a 4-bedroom home in the nicest part of Berlin for 4 to 5 ounces of gold. In Connecticut, you could purchase homes for 1 ounce of gold. Not predicting those lows, just saying that it can go lower than one believes is possible. My guess is hard bottom for RE in 2025.<\/p>\n
Look at the GOLD:DOW ratio. in 1980 it was 1:1 and in 2012 it bottomed at 8:1. I still see this coming down hard to 1:1 or lower. That will involve a combo of Gold increasing in price and Dow dropping in price. Gold is currently at 18:1 and it will drop along with Real estate prices, IMHO.<\/p>\n
Cheers and have a great weekend fellow Tenters \ud83d\ude42<\/p>\n
Updated File Real estate priced in Gold Ounces<\/a><\/p><\/blockquote>\n