Submitted by Jim, Aug 27, 2008 18:12

Home prices in lower New York State have not bottomed yet, and they certainly have not bottomed relative to gold. the price of gold was recently hammered down nearly 25 percent (from $1030 to $780) in a relatively short period of time. this explains why home prices appear to be gaining ground against gold, despite the fact that home prices are still falling in dollar terms. expect the price of gold to recover over the next few months (and beyond) while homes located within 150 miles from NYC will continue to see price declines in dollar terms. also, you might want to take a look at home prices (relative to gold) for January 1980 to get a better idea of where the bottom might be.

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