At its peak, the housing market in March 2007, the median U.S. home was $262,600, which was equivalent to 340.6 ounces of gold. Today's median income price is $186,100 or 109.2 ounces of gold. So in terms of real money, gold, the U.S. median home price has lost 47% since 2007 (Richard Russell from 321gold.com - Source LINK).Please read the entire commentary I linked. It's short. Back in 2002 I suggested to anyone who asked me that housing would lose 75-90% of its value before the coming bear market in housing was finished. Some of those people are probably still thinking that I was overdosing on LSD. The good news is that I've never taken LSD (I know that's hard to believe for anyone who knows me, but it's true lol) and my prediction for housing is more than halfway home, so to speak, when viewed in terms of real money (uh, gold). I must admit that I wasn't thinking about using gold to measure the price of a home - I was using $dollars to measure home value. I know in many areas, distressed sales are occuring at more than 75% below the peak valuation level for homes. Having said that, I still believe that the average house will eventually drop at least 75% as measured in dollars and 90% as measured in gold.
There is also a good comparison chart in that link above showing the performance of the Dow vs. gold over the last 10 years. That the Dow has barely moved higher over that time period, and has plummetted vs. gold, will likely shock anyone who sees those charts.
I probably should start to focus more on the two bubbles that have yet to really blow up and crash - the dollar and Treasury bonds - rather than on housing. But there are still many people who ask me about housing and most of them refuse to believe that housing can go lower from here. Oh well. I guess you can look at it terms of gold like this: the dollar is going to go a LOT lower which, tautologically speaking, means that gold will go a LOT higher. So if you buy enough gold to fund 50% of a home purchase today, eventually - and possibly sooner that anyone thinks can happen - you will be able to fund the entire purchase of your dream home with gold you buy today.
To understand why the dollar is going to plummet, please read this quick commentary by James Turk in Eric King's blog: LINK Capire a tutti?