Have prices reverted back to historic norms yet?
Even after the 2.3% decrease in median home prices, the short answer is no. Consider the following from Chart of the Day, who note:
“For some perspective into the all-important US real estate market, today’s chart illustrates the US median price of a single-family home over the past 39 years. Not only did housing prices increase at a rapid rate from 1991 to 2005, the rate at which housing prices increased – increased.
That brings us to today’s chart which illustrates how housing prices are currently 30% off their 2005 peak. In fact, a home buyer who bought the median priced single-family home at the 1979 peak has seen that home appreciate by a mere 4%. Not an impressive performance considering that three decades have passed. Over the past two months, single-family home prices have resumed their decline and remain (until proven otherwise) in an accelerated downtrend.”
I have annotated the COTD below, showing 3 distinct phases of the acceleration in price appreciation: From 1) During the Bull market 1985-1996; 2) Then following an advantageous tax change, ~1997 -2002. and then 3) After rates came down to 1% in 2003, housing went ballistic.
Courtesy of Chart of the Day
Category: Real Estate
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.