For some perspective on the all-important U.S. real estate market, today's chart illustrates the inflation-adjusted median price of a single-family home in the United States over the past 41 years.
Not only did housing prices increase at a rapid rate from 1991 to 2005, the rate at which housing prices increased jumped, too.
That brings us to today's chart which illustrates how the inflation-adjusted median home price is currently -38% off its 2005 peak.
That's a -$100,000 drop!
In fact, a home buyer who bought the median priced single-family home at the 1979 peak has actually seen that home lose value (a -8.5% loss adjusted for inflation). Not an impressive performance considering that more than three decades have passed. It is worth noting that the median priced home is currently in the bottom half of a price range that existed from the late 1970s into the mid-1990s.
Chart & Commentary Courtesy of Chart of The Day
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