I am not certain what to make of this given the actual paucity of data regarding real estate and the outright dishonesty of many land rats. Its a nice looking chart and it may have some broad value but I am not certain what it is. Housing is not like trading where price discovery is continual. Price discovery in real estate is lumpy and is plagued by dodgy numbers.
I can see that we detached from the Price/Family Income level back in the late 1990′s and that this ratio blew out to 4.8 in 2007 and still seems to be hovering around that mark today. However, I am not certain what one could do with this information since we cannot short sell real estate and if you already own a home your stuck with it.