categories
Recent Comments
- Originations: Are Realtors Overpaid? | The Basis Point on Housing Bubble Talk Returns
- 12.61% Dividend Payer Apollo Residential Mortgage Returned 56% In 2012, Uptrend Is Still Strong on U.S. Housing And Residential Mortgage Finance 2013 Outlook: The Nascent Recovery Is Likely To Continue
- Mortgage application fraud is on the rise on U.S. Housing And Residential Mortgage Finance 2013 Outlook: The Nascent Recovery Is Likely To Continue
- Real Estate Investing News This Week 2013-04-13 on A Housing Recovery Is Buttressing U.S. Homebuilders’ Credit Quality
- Tuesday Morning Links | timiacono.com on As The Market Recovers, U.S. Single-Family Housing Activity Builds
tags
10-City Composite 20-City Composite Atlanta Boston Chicago Credit Default Indices Dallas David Blitzer Economy and Real Estate Existing Home Sales Experian home prices Las Vegas latest results Los Angeles Miami mortgages MSAs New York Phoenix residential real estate S&P/Case-Shiller S&P/Case-Shiller Home Price Indices report S&P/Experian Consumer Credit Default Indices San Francisco US Housing Prices
WP Cumulus Flash tag cloud by Roy Tanck requires Flash Player 9 or better.
The posts on this blog are opinions, not advice.
Please read our disclaimers for Ratings Services, Indices, Equity Research, Securities Evaluations and Risk Solutions
Please read our disclaimers for Ratings Services, Indices, Equity Research, Securities Evaluations and Risk Solutions
5 Trackbacks
[...] Check out Standard & Poor’s article to see their chart. [...]
[...] prices were also pretty nice way back in 2001. Which makes this little tidbit from HousingViews.com about home prices very [...]
[...] a new post on his Housingviews blog, David Blitzer, the Chairman of the Index Committee for S&P, says that [...]
[...] Blitzer, Chairman of the Index Committee S&P Indices, posted a chart on Stand & Poor’s HousingView blog showing the 10-City Composite Index in current dollars along with the Index deflated by the Consumer [...]
[...] prices were also pretty nice way back in 2001. Which makes this little tidbit from Housing Views about home prices very interesting. And this could cause some people to think they should buy a [...]
Home Prices Corrected for Inflation at 2001 Levels
Take inflation out of home prices and we’re back to 2001 — ten years ago. The chart shows the S&P/Case-Shiller 10-City Composite Index in nominal (or current dollar) terms along with the index deflated by the Consumer Price Index. Looking at the dashed orange lines near the lower right hand corner, one sees that prices haven’t gotten much beyond where they were in early 2001. In fact, allowing for a dip in home prices in the 1990s when inflation rose faster than houses, we’re almost back to 1989.
Back to 2001
This shouldn’t suggest that home prices never rise faster than inflation any more than the arguments for investing in your home — they’re not making any more land or everyone has to live somewhere — should be ignored. Rather, the run-up and the run-down in prices in the 2000s didn’t do much for average home values while they wreaked havoc on the economy. Is buying a home a good idea? There isn’t a general answer to the question because it depends on the economy, the real estate market and most of all on the needs, desires and finances of the potential buyer.