I love graphs. I love data. This graph from Calculatedrisk is worth 10,000 words.
From this article
What do I take from this?
1) 7 months of inventory is zero percent home appreciation.
2) 4 to 5 months of inventory looks to be normal from that graph...
3) +/- 2% appreciation based upon market perceptions.
I appreciate the nature of the scatter plot. Now I want to take this approach and expand it (not tonight, next year). Why? I want to see how credit availability impact the trend. Since that is a slow effect (that needs some seasonality correction)... its something to consider for now.
I'm looking forward to seeing this graph filled out with more data. Anyone else thinking the next few years will fill out the right side of the graph nicely? I'm thinking that it should also be done for a few local markets... So I'll collect the data and publish later.
Got Popcorn?
Neil
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