a home buyer who bought the median priced single-family home at the 1979 peak has actually seen that home lose value, a 1.6% loss!Of course, buyers who purchases their homes between 1980 and the mid 1990s stand a good chance of being ahead of inflation with their purchase. When you add in the savings on rent plus the tax benefits, home ownership looks even better.
The lesson from the chart is don't buy a home (or any asset for that matter) after prices have gone "parabolic." We like to buy homes after major declines in the chart. No matter how you look at it, today is a much better time to buy a home than two years ago.