James Bednar, who writes the blog Northern New Jersey Bubble, went back to the real estate bubble of the 1980′s to try to put the current market in perspective. This graph shows per capita income creeping dangerously close to the median home price line which proved to be turning point last time round. He also culls through all the relevant New York Times article so the time and tracks the collective mentality by year, as in “1982 – Real Estate Buzz Begins” and “1984 – Prices Begin to Skyrocket.” If we had to guess, we bet Bednar thinks 2006 is a lot like 1991, a “False Glimmer of Hope.”
Home Prices Do Fall [NNJ Bubble]