Chart of the Day 09/09/2011
Single Family Home Priced in Gold

Today's chart of the day for 09/09/2011 displays the median price of a single family home in the U.S. priced in gold.

Many people consider the real estate market the general source of where trouble all began for the economy leading up to 2007-2008.

Crazy mortgages, little to no requirements imposed on allowing credit and the subsequent bubble in real estate prices are still having dreary effects on the economy, not just in the U.S. but across the world as well.

Earlier in March of 2011 I posted a chart with the same data as below only today's is updated to include the months up to September 9, 2011. You can review the previous chart here: Chart of the Day 03/11/2011 Single Family Home Priced in Gold and see that the trend is still continuing downward.

Note: Since March 2011 on the previous chart, both Gold prices have continued to move higher and real estate prices have continued lower, making the downtrend more noticeable in these few short months.

The struggling real estate market remains a concern for investors. For some perspective on home prices, today's chart presents the median single-family home price divided by the price of one ounce of gold. This results in the home / gold ratio or the cost of the median single-family home in ounces of gold.

For example, it currently takes a relatively low 94 ounces of gold to buy the median single-family home. This is dramatically less than the 601 ounces it took back in 2001.

When priced in gold, the median single-family home is down 84% from its 2001 peak (to a level last seen in 1980) and remains well within the confines of a six-year accelerated downtrend and continues to close in on its 1980 trough.

Chart courtesy of Chart of the Day
Chart of the Day 09/09/2011 - Single Family Home Priced in Gold

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