For some perspective on the single-family home market, today’s chart presents the median single-family home price divided by the price of one ounce of gold.
This results in the home gold ratio or the cost of the median single-family home in ounces of gold.
For example, it currently takes a relatively low 168 ounces of gold to buy the median single-family home. This is dramatically less than the 601 ounces it took back in 2001.
When priced in gold, the median single-family home is down 72% from its 2001 peak. Since making a new 32 year low back in early 2012, home prices (priced in that other global currency — gold) have worked their way higher.
Currently, home prices (priced in gold) are currently testing support of a three-year uptrend.
via Chart of the Day
Featured image: Flickr/BullionVault