The average home price has lost ground to inflation over the last 30 years. This graph of single family home prices adjusted for Inflation shows prices have lost ground over the peak price in 1979.
Click Chart courtesy of Chartoftheday.com for large image The chart shows prices, adjusted for inflation, are now below 1979 levels! According to chartoftheday:
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.
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.
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