Crack House
This might be the first crack in the housing bubble. The graph below is of the Philadelphia Housing Index (major home builders) since the index began in 2002. The HGX index (In blue) has remained above the Index´s 200 day moving average line (in red) until very recently. This "technical" sign is surprising given the increase in interest rates by the Fed and in long term governmen bonds. The index shows a 150% gain in the last couple of years, but several of the home builders are up much more since the housing bubble began.
Comments (2)
It should read that this is NOT surprising given the increase in increase rates.
Published: November 12, 2005 2:43 AM
In the 50's the typical new house was under 1000 sq ft and the wife stayed home and raised the kids. The average house size was doubled by the wife working a full day. The houses went to 3000 sq ft by the husband working overtime and spending over 2 hours a day commuting.
There is no one else for the family to send into the work world unless the children contribute to the family income.
That will not happen because the kids work for their cars, not their families.
Published: November 14, 2005 11:35 AM