The home crisis isn't over

Here's Ritholtz on why home prices are too high (link).

In my analysis, price stands out as being the prime mover of the next leg down. High unemployment, and a decade of flat wages aren’t helping to create any new housing demand. And the millions in homes they cannot afford will eventually add more pressure to inventory and prices.

But the bottom line is Home prices remain too high: There can be no doubt that home prices have moved way down from the 2005-06 peaks. How did I reach the conclusion that, even after a 33% decrease in prices?

By using traditional metrics. Whether we are looking at US housing stock as a percentage of GDP or Median income vs home prices or even ownership vs renting costs, prices remain elevated. Indeed, we see prices remain above historic mean.

I'd recommend reading the whole post if you're following the housing market.  He's got a great perspective and it shows in this writing.  Below are two charts he references in his post.  Good stuff!

Hey, it can't be that bad. It got a B+.

Mmm.  Burger.  Mmm.  Grilled Cheese.

Here's a sum up of the new Grilled Chess BurgerMelt from Friendly's (link):

Friendly's Grilled Cheese BurgerMelt
Grade: B+
Nutritional Info: 1500 calories, 97 grams fat, 2090 mgs sodium

While completely over the top, this sandwich is also pure genius. Yes, it's higher in calories, fat and sodium than the Double Down, but the ingredients in this sandwich are more harmonious, making it an embarrassingly pleasurable eating experience. (As one of our readers recently commented, " its heart, all this is is a cheeseburger on buttered toast.")

The grilled cheese "buns" were buttery, oozing with just the right amount of cheese and just the right amount of greasiness. True, the burger could have been more plump and juicy but it was the right amount of beef to balance out the two grilled cheese sandwiches. The only thing we'd do differently is skip the lettuce. Watery, shredded lettuce did not pair well with the grilled cheese.

 Hungry?  Take two of these and call me from the hospital.