Using a model that ties house prices to disposable incomes and long-term interest rates, analysts at Goldman Sachs reckon that the correction in national house prices is only halfway through.
U.S. GDP growth fourth-over-fourth was a fast 3.1% in both 2005 and 2006, despite constant talk of a consumer slowdown, Katrina and then the house-building correction.
If so, the prudent in our midst who waited out the housing boom in the hope of seeing a correction could have purchased a great deal more in the way of house on the relative cheap.