Wednesday, December 28, 2011

It's all over now, baby blue?

Adjusting for inflation, real house prices are back to where they were in 2000. If we are not at the bottom, we have got to be pretty close, no? Could it possibly be a good time to buy?

(clic the pic for an even more vertiginous image)


Anonymous said...

Maybe I"m misreading this, but if this is adjusted for inflation then a house has the same value today as it did in 1987-ish. So it makes me think this is a horrible investment, and without a bubble in the future you might as well literally sleep in a pile of $. Of course you need to live somewhere, and that will cost you (unless you live with the parental units, but that may cost you in non-monetary ways). But this chart makes it look like a bad investment, and that's not even taking into account the transaction and capital costs of owning.

Angus said...

No, you are reading the chart 100% correctly.