What goes up must come down
Here’s a graph of US housing prices since 1975, both the stated prices and the same prices adjusted for inflation:
As you can see, once you adjust for inflation, housing prices have peaked and then fallen three times in the last 30 years.
I remember looking at a $35,000 house in the semi-rural area near Cherry Hill, New Jersey — five bedrooms plus a freestanding garage/workshop — in 1979. I didn’t buy it (and didn’t accept the job at RCA) because winter heating oil costs were around $300/month at a time when I was only grossing $1300/month. Oh, and inflation was moving towards double-digit values, as were mortgage interest rates. I remember all that quite well, which is why I’m not panicking about the current financial mess just yet. ..bruce w..
Category: Credit Backlash, Economics, Main, Recession Watch