We constantly hear reports about home sales being far lower than they were at the peak of the housing boom. But under normal economic conditions, should we expect a rebound in home sales, or are they still higher than we can support on a sustainable basis?
Based on this graph, it would seem that despite the fact that annual home sales are far lower than they have been, they are still above average (of 1.49 sales / 100,000 people) for the last 40 years. However, the average may be a bit deceiving, as the trend line over the last 40 years appears positive. Obviously, it cannot continue to be positive forever, as that would mean that at some point in the future, we would all be moving every month. However, some demographic factors (smaller families, more affluency etc.) suggest that we probably move more often now than we did 40 years ago.