{"id":447904,"date":"2010-03-19T12:48:41","date_gmt":"2010-03-19T16:48:41","guid":{"rendered":"http:\/\/www.businessinsider.com\/what-house-price-to-rent-ratios-say-about-the-state-of-the-market-2010-3"},"modified":"2010-03-19T12:48:41","modified_gmt":"2010-03-19T16:48:41","slug":"what-house-price-to-rent-ratios-say-about-the-state-of-the-market","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/447904","title":{"rendered":"What House Price-To-Rent Ratios Say About The State Of The Market"},"content":{"rendered":"<p><a href=\"http:\/\/3.bp.blogspot.com\/_pMscxxELHEg\/S6N_1DpNYII\/AAAAAAAAH0o\/tjV8i4_1aNc\/s1600-h\/PriceRentJan2010LoanPerformance.jpg\"><img decoding=\"async\" class=\"float_right\" src=\"http:\/\/static.businessinsider.com\/image\/4ba3aa8e7f8b9a35530c0500\/chart.jpg\" border=\"0\" alt=\"chart\" \/><\/a>Here is an update on the price-to-rent ratio using the First American CoreLogic price index released yesterday for house prices through January.<\/p>\n<p>In October 2004, Fed economist John Krainer and researcher Chishen Wei wrote a Fed letter on price to rent ratios: House Prices and Fundamental Value. Kainer and Wei presented a price-to-rent ratio using the OFHEO house price index and the Owners&#8217; Equivalent Rent (OER) from the BLS.<\/p>\n<p>The following graph uses the First American data &#8230;<\/p>\n<p>Price-to-Rent Ratio<\/p>\n<p><em>Click on graph for larger image in new window.<\/em><\/p>\n<p>This graph shows the price to rent ratio (January 2000 = 1.0).<\/p>\n<p>This suggests that house prices are still a little too high on a national basis. But it does appear that prices are much closer to the bottom than the top.<\/p>\n<p>Also, OER declined slightly again in February. The price index has declined 6 of the last 8 months, although most of the declines have been very small. With rents still falling, the OER index will probably continue to decline &#8211; pushing up the price-to-rent ratio.<\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/what-house-price-to-rent-ratios-say-about-the-state-of-the-market-2010-3#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/2_CeUhfbw7Q\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here is an update on the price-to-rent ratio using the First American CoreLogic price index released yesterday for house prices through January. In October 2004, Fed economist John Krainer and researcher Chishen Wei wrote a Fed letter on price to rent ratios: House Prices and Fundamental Value. Kainer and Wei presented a price-to-rent ratio using [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-447904","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/447904","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=447904"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/447904\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=447904"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=447904"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=447904"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}