Just a little video of the housing prices using Case Shiller Data and annual median incomes.
Household income in a catchment area is the ultimate arbiter of aggregate house values. It works like a carrying capacity argument for a species occupying an ecological niche. Homes need peoples incomes to support their values. I know it is a weird way of expressing it.
I wrote about the current issue back in 2007 and a potential loss of value estimated at $6.6 trillion. It was outlandish then, but rather pedestrian now. For more detail on the thought processes in 2007 look here.
A book that has been getting rave reviews and is on my to read list is Barry Ritholtz's Bailout Nation. Barry usually has a pretty solid view on things.
The source data for the movie is hereDownload ShillermovieV1.0. If you want a regular XLS file without the whizbang overpirced office 2007 graphics let me know and I can send you a copy. Music by De-Phazz. Video capture with Camtasia and MS excel VBA For Loop.